Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8
Character Range: 6054071–6054942

8                                      Item 1 of the table in section 208‑145 does not apply to the *head company

Note 1: If the subsidiary's franking account is in deficit, it will be liable for franking deficit tax: see subsection 709‑60(3).
Note 2: The subsidiary's franking account does not operate while it is a member of the group: see section 709‑65.

709‑165  Subsidiary member is former exempting entity
 (1) This section operates if:
 (a) the *head company of a *consolidated group is neither an exempting entity nor a *former exempting entity; and
 (b) a *corporate tax entity becomes a *subsidiary member of the group at a time (also the joining time); and
 (c) the entity is a *former exempting entity at the joining time.
 (2) These rules apply to the *consolidated group.

Rules applying to *consolidated group
Item                                   Rule