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-C - Treatment of excess franking deficit tax offsets when entity becomes a subsidiary member of a consolidated group  

SECTION 709-190  

709-190   Exit history rule not to treat leaving entity as having a franking deficit tax offset excess  

To avoid doubt, if:

(a) the ^* head company of a ^* consolidated group is entitled to a ^* tax offset under section 205-70 for an income year; and

(b) an amount (the excess ) of the offset remains after applying section 63-10 (about the tax offset priority rules) to the head company ' s basic income tax liability for that income year; and

(c) an entity ceases to be a ^* subsidiary member of the group in the income year;

the entity is not taken because of section 701-40 (the exit history rule):

(d) to have the excess; or

(e) to have another excess of that kind because of the circumstances that caused the head company to have the excess.