Document ID: chunk:federal_register_of_legislation:C2025C00014:section:177eb:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 177EB (pt 2/2)
Character Range: 1641372–1643312

of the Taxation Administration Act 1953.

Relevant circumstances
 (10) The relevant circumstances of a scheme include the following:
 (a) the extent and duration of the risks of loss, and the opportunities for profit or gain, from holding membership interests in the joining entity that are respectively borne by or accrue to the parties to the scheme, and whether there has been any change in those risks and opportunities for the head company or any other party to the scheme (for example, a change resulting from the making of any contract, the granting of any option or the entering into of any arrangement with respect to any membership interests in the joining entity);
 (b) whether the head company, or a person holding membership interests in the head company, would, in the year of income in which the joining entity became a subsidiary member of the group or any later year of income, derive a greater benefit from franking credits than other persons who held membership interests in the joining entity immediately before it became a subsidiary member of the group;
 (c) the extent (if any) to which the joining entity was able to pay a franked dividend or distribution immediately before it became a subsidiary member of the group;
 (d) whether any consideration paid or given by or on behalf of, or received by or on behalf of, the head company in connection with the scheme (for example, the amount of any interest on a loan) was calculated by reference to the franking credit benefits to be received by the head company;
 (e) the period for which the head company held membership interests in the joining entity;
 (f) any of the matters referred to in subsection 177D(2).

Section to apply to exempting credits
 (11) This section applies to exempting credits arising in the exempting account of the head company of a consolidated group in the same way that it applies to credits arising in the head company's franking account.