Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_5:p5
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 5/10)
Character Range: 159177–162075

assessable income for the year.

Limit on deduction

 (3) This section does not allow the deduction for an income year of an amount of losses in a *bundle so as to exceed the limit set by section 707‑310 or 707‑335 on *utilisation for the year of losses of that *sort in the bundle.

707‑345  Other provisions are subject to this Subdivision

  The rules in this Subdivision are additional to the provisions of this Act about *utilising losses that are outside this Subdivision. Those provisions have effect subject to this Subdivision.

Subdivision 707‑D—Special rules about losses

Table of sections

707‑400 Head company's business before and after consolidation not compared
707‑405 Modified operation of other provisions

707‑400  Head company's business before and after consolidation not compared

 (1) If:
 (a) the *same business test applies to a company that becomes a *head company of a *consolidated group at a time; and
 (b) apart from this section, the same business test period would start before that time and end after it;
the same business test period starts at that time (and ends when it would end apart from this section), for the purposes of that application of the same business test.

 (2) Subsection (1) does not apply for the purposes of working out whether the company can transfer to itself a loss under section 707‑120.

707‑405  Modified operation of other provisions

 (1) If:
 (a) an entity becomes a *member of a *consolidated group at a time; and
 (b) the entity makes a non‑membership period loss described in section 701‑30 for a non‑membership period described in that section that ends before the time;
the other sections of this Division operate as if the loss had been made by the entity for an income year starting at the start of the period and ending at the end of the period.

 (2) Subsection 701‑30(7) has effect subject to this section.

[The next Division is Division 709.]

Division 709—Other rules applying when entities become subsidiary members etc.

Table of Subdivisions

709‑A Franking accounts

Subdivision 709‑A—Franking accounts

Guide to Subdivision 709‑A

709‑50  What this Subdivision is about

      Only the head company of a consolidated group has an operating franking account. The subsidiary members' franking accounts do not operate while they are subsidiary members. Debits or credits that would otherwise arise in subsidiary members' franking accounts arise instead in the head company's franking account.

Table of sections

Object

709‑55 Object of this Subdivision

Treatment of franking accounts at joining time

709‑60 Nil balance franking account for joining entity

Treatment of subsidiary member's franking account

709‑65 Subsidiary member's franking account does not operate

Treatment of head company's franking account

709‑70 Credits arising in head company's franking account
709‑75 Debits arising in