Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:7_2
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 7 cl 2
Character Range: 101195–102033

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 is not 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.]