Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014 (110 of 2014)

Schedule 5  

Part 4   Other amendments of principal Acts

Income Tax Assessment Act 1997

116   Subsection 709-185(2)

Repeal the subsection, substitute:

Transfer of excess to head company

(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.

(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.