Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:14_1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 14 cl 1
Character Range: 249776–251857

1  At the end of Subdivision 709‑A
Add:

Payment of group liability by former subsidiary member

709‑95  Payment of group liability by former subsidiary member

 (1) This section operates if:
 (a) an entity (the former subsidiary) ceases to be a *subsidiary member of a *consolidated group (the old group) at a particular time (the leaving time); and
 (b) at or after the leaving time, the former subsidiary:
 (i) *pays a PAYG instalment for which it was jointly and severally liable under subsection 721‑15(1) because it was a subsidiary member of the old group; or
 (ii) *pays income tax for which it was jointly and severally liable under that subsection because it was a subsidiary member of the old group; and
 (c) apart from this section, a *franking credit would arise under section 205‑15 in the *franking account of the former subsidiary at a time (the crediting time) because of that payment.

 (2) The credit:
 (a) does not arise at the crediting time in the *franking account of the former subsidiary; and
 (b) instead, arises at the crediting time in the franking account of the entity that was the *head company of the old group at the leaving time.

709‑100  Refund of income tax to former subsidiary member

 (1) This section operates if:
 (a) an entity (the former subsidiary) ceases to be a *subsidiary member of a *consolidated group (the old group) at a particular time (the leaving time); and
 (b) at or after the leaving time, the former subsidiary *receives a refund of income tax for which it was jointly and severally liable under subsection 721‑15(1) because it was a subsidiary member of the old group; and
 (c) apart from this section, a *franking debit would arise under section 205‑30 in the *franking account of the former subsidiary at a time (the debiting time) because of that payment.

 (2) The debit:
 (a) does not arise at the debiting time in the *franking account of the former subsidiary; and
 (b) instead, arises at the debiting time in the franking account of the entity that was the *head company of the old group at the leaving time.