New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)

Schedule 7   Consolidation: foreign tax credits and exit history rule

Income Tax Assessment Act 1997

2   At the end of Subdivision 717-A

Add:

717-30 Exit history rule does not treat leaving entity as having foreign tax credits

(1) This section operates in relation to an income year if:

(a) an entity (the leaving entity ) ceases to be a*subsidiary member of a*consolidated group before the end of that income year; and

(b) the*head company of the group has*excess foreign tax credits from an earlier income year.

(2) To avoid doubt, the leaving entity isnot taken because of section 701-40 (the exit history rule) to have those*excess foreign tax credits.

(3) It does not matter whether the*head company has those*excess foreign tax credits because of section 717-10 or 717-15 (whether in relation to the leaving entity or another entity) or because of another provision.

[The next Subdivision is Subdivision 717-D.]