Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 709 - Other rules applying when entities become subsidiary members etc.  

Subdivision 709-A - Franking accounts  

Franking distributions by subsidiary member

SECTION 709-80   Subsidiary member ' s distributions on employee shares and certain preference shares taken to be distributions by the head company  

709-80(1)    
This section operates if:

(a) a ^* subsidiary member of a ^* consolidated group makes a ^* frankable distribution; and

(b) the distribution is made because an entity (the shareholder ) owns a ^* share in the subsidiary member; and

(c) the share must be disregarded under subsection 703-35(4) or 703-37(4) ; and

(d) the distribution is made to the shareholder, or to another entity because the shareholder owns the share; and

(e) the entity to which the distribution is made is not a ^* member of the group.

Note 1:

Subsection 703-35(4) requires certain shares acquired under employee share schemes to be disregarded.

Note 2:

Subsection 703-37(4) requires certain preference shares to be disregarded following an ADI restructure.

709-80(2)    
Part 3-6 operates as if the ^* distribution were a ^* frankable distribution made by the ^* head company of the group to a ^* member of the head company.

Note:

Part 3-6 deals with imputation.