Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 717 - International tax rules  

Subdivision 717-E - Transfer of certain surpluses under CFC provisions and former FIF and FLP provisions: exit rules  

Transfers

SECTION 717-245   Attribution surpluses  

717-245(1)    
This section operates for the purposes of Part X of the Income Tax Assessment Act 1936 if:

(a) a company (the leaving company ) ceases to be a ^* subsidiary member of a ^* consolidated group at a time (the leaving time ); and

(b) just before the leaving time there was, for the purposes of that Part, an attribution surplus for an attribution account entity in relation to the ^* head company of the group; and

(c) at the leaving time the leaving company's attribution account percentage in relation to the attribution account entity for the purposes of that Part is more than nil.

Credit in relation to leaving company

717-245(2)    
An attribution credit arises at the leaving time for the attribution account entity in relation to the leaving company. The credit is the amount worked out under subsection (4).

Debit in relation to head company

717-245(3)    
An attribution debit arises at the leaving time for the attribution account entity in relation to the company that was the ^* head company of the group just before the leaving time. The debit is the amount worked out under subsection (4).

Amount of credit and debit

717-245(4)    
The amount of the credit and debit is worked out using the formula:

Leaving company's attribution account percentage in relation to the attribution             account entity at the leaving time             *Head company's attribution account percentage in relation to the attribution account entity just before the leaving time

×

Attribution surplus for the attribution account entity in relation to the *head company just before the leaving time