Income Tax Assessment Act 1997
View history note
Hide history noteThis section operates if:
(a) an entity (the joining entity ) becomes a * subsidiary member of a * consolidated group at a time (the joining time ); and
(b) the joining entity is entitled to a * tax offset under section 205-70 for the income year that ends or, if subsection 701-30(3) applies, that is taken by subsection (3) of that section to end, at the joining time; and
(c) an amount (the joining entity ' s excess ) of the offset remains after applying section 63-10 (about the tax offset priority rules) to the joining entity ' s basic income tax liability for that income year.
Transfer of excess to head company
709-185(2)
For the purpose of applying subsection 205-70(1) to the *head company of the *consolidated group for the income year in which the joining time occurs:
(a) if, as described in paragraph 205-70(1)(c) , an amount of a *tax offset remains after applying section 63-10 - that amount is taken to be increased by the amount of the joining entity ' s excess; or
(b) otherwise:
(i) paragraph 205-70(1)(c) is taken to apply to the head company; and
(ii) the remaining amount of a tax offset covered by that paragraph is taken to be the amount of the joining entity ' s excess.
Note:
Paragraph 205-70(1)(c) refers to tax offsets under section 205-70 .
709-185(2A)
In working out whether paragraph (2)(a) applies, take into account any application of this section to any other entity that became a *subsidiary member of the group before the joining time.
Joining entity prevented from utilising excess in later income years
709-185(3)
For the purpose of applying subsection 205-70(1) to the joining entity for any income year after that in which the joining time occurs, the joining entity ' s excess is disregarded.
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