New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)
Schedule 8 Consolidation: various provisions about CFCs, FIFs and FLPs
Income Tax Assessment Act 1997
9 At the end of Division 717
Add:
Subdivision 717-F - Elections etc. relating to CFCs, FIFs and FLPs: entry rules
Guide to Subdivision 717-F
717-270 What this Subdivision is about
This Subdivision deals with the effect upon certain elections etc. relating to CFCs, FIFs and FLPs when an entity becomes a subsidiary member of a consolidated group.
Table of sections
Application and object
717-275 Application
717-280 Object of this Subdivision
Elections etc.
717-285 Pre-joining-time irrevocable elections etc. by joining entity not inherited by head company
717-290 Pre-joining-time actions of joining entity do not prevent head company from electing to apply the calculation method
[This is the end of the Guide.]
Application and object
717-275 Application
This Subdivision operates for the purposes of Part X and Part X1 of the Income Tax Assessment Act 1936 if an entity (the joining entity ) becomes a *subsidiary member of a *consolidated group at a time (the joining time ).
717-280 Object of this Subdivision
The object of this Subdivision is to provide:
(a) that the *head company of the *consolidated group does not inherit the joining entity's irrevocable declarations, elections, choices or selections; and
(b) that pre-joining-time actions of the joining entity do not prevent the head company from electing to apply the calculation method to determine whether foreign investment fund income accrued from a FIF.
Elections etc.
717-285 Pre-joining-time irrevocable elections etc. by joining entity not inherited by head company
If at the joining time an irrevocable declaration, election, choice or selection made by the joining entity under Part X or XI of the Income Tax Assessment Act 1936 is in force, then, for the head company core purposes, the *head company of the group is not taken to have made the declaration, election, choice or selection.
Note 1: The entry history rule in section 701-5 would otherwise have had the effect that the head company is taken to have made the declaration etc.
Note 2: Declarations etc. actually made by the head company would apply to interests in CFCs, FIFs or FLPs of which the head company becomes the holder under the single entity rule as a result of the joining entity becoming a subsidiary member.
717-290 Pre-joining-time actions of joining entity do not prevent head company from electing to apply the calculation method
Any entitlement of the *head company of the group to make an election under subsection 535(3) of the Income Tax Assessment Act 1936 for the head company core purposes is not affected by anything done by the joining entity before the joining time.
Note: The entry history rule in section 701-5 would otherwise have had the effect that actions of the joining entity would be treated as those of the head company. Depending on the nature of the actions, this could have prevented the head company from making the election mentioned above.
Subdivision 717-G - Elections etc. relating to CFCs, FIFs and FLPs: exit rules
Guide to Subdivision 717-G
717-295 What this Subdivision is about
This Subdivision deals with the effect upon certain elections etc. relating to CFCs, FIFs and FLPs when an entity ceases to be a subsidiary member of a consolidated group.
Table of sections
Application and object
717-300 Application
717-305 Object of this Subdivision
Elections etc.
717-310 Pre-leaving-time irrevocable declarations, elections, choices and selections by head company not inherited by leaving entity
717-315 Pre-leaving-time actions of head company do not prevent leaving entity from electing to apply the calculation method
[This is the end of the Guide.]
Application and object
717-300 Application
This Subdivision operates for the purposes of Part X and Part X1 of the Income Tax Assessment Act 1936 if an entity (the leaving entity ) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time ).
717-305 Object of this Subdivision
The object of this Subdivision is to provide:
(a) that the leaving entity does not inherit the *head company's irrevocable declarations, elections, choices or selections; and
(b) that pre-leaving-time actions of the head company do not prevent the leaving entity from electing to apply the calculation method to determine whether foreign investment fund income accrued from a FIF.
Elections etc.
717-310 Pre-leaving-time irrevocable declarations, elections, choices and selections by head company not inherited by leaving entity
If at the leaving time an irrevocable declaration, election, choice or selection made by the *head company of the group under Part X or XI of the Income Tax Assessment Act 1936 is in force, then, for the entity core purposes, so far as they relate to the leaving entity after the leaving time, the leaving entity is not taken to have made the election.
Note: The exit history rule in section 701-40 would otherwise have had the effect that the leaving entity is taken to have made the declaration etc.
717-315 Pre-leaving-time actions of head company do not prevent leaving entity from electing to apply the calculation method
Any entitlement of the leaving entity to make an election under subsection 535(3) of the Income Tax Assessment Act 1936 for the entity core purposes, so far as they relate to the leaving entity after the leaving time, is not affected by anything done by the *head company before that time.
Note: The exit history rule in section 701-40 would otherwise have had the effect that actions of the head company would be treated as those of the leaving entity. Depending on the nature of the actions, this could have prevented the leaving entity from making the election mentioned above.