Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:6_2:p3
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 3/5)
Character Range: 41665–44406

to a later income year so that the entity no longer has the transfer credits mentioned in paragraph (1)(c) (see paragraph (2)(b)). The entity later leaves the group and becomes a subsidiary member of a second consolidated group. In a subsequent operation of this section in relation to the head company of the second group, the entity will not have those transfer credits, because of the previous operation of paragraph (2)(b).
 (4) This section operates separately in relation to each class of foreign income (within the meaning of the Income Tax Assessment Act 1936) identified in subsection 160AF(7) of that Act, as if:
 (a) the *head company's foreign income of that class for an income year were the whole of the head company's foreign income for that year; and
 (b) the joining entity's foreign income of that class for an income year were the whole of the joining entity's foreign income for that year.

717‑20  Where entity not subsidiary member for whole of income year
 (1) This section operates if:
 (a) an entity (the joining entity) is a *subsidiary member of a *consolidated group for some but not all of an income year (the joining year); and
 (b) there are one or more periods in the joining year (each of which is a non‑membership period) during which the entity is not a subsidiary member of any *consolidated group.
Note: Section 701‑30 treats each non‑membership period as a separate income year for some purposes.
 (2) Subsection (3) has effect for the purposes of section 701‑30 in relation to the joining entity.
 (3) In working out amounts for the joining entity under subsection 701‑30(3) in relation to each non‑membership period, make these assumptions:
 (a) if the joining year starts at the same time as the earliest of those non‑membership periods:
 (i) subsection 160AFE(2) of the Income Tax Assessment Act 1936 operates in relation to the joining entity for that non‑membership period; and
 (ii) subsection 160AFE(2) of that Act does not operate in relation to the joining entity for the later non‑membership periods (if any);
 (b) otherwise—subsection 160AFE(2) of that Act does not operate in relation to the joining entity for any of the non‑membership periods.
 (4) Subsection (5) has effect for the purposes of section 717‑15 in relation to the *head company of the *consolidated group for a later income year.
 (5) In working out the amount (if any) of the joining entity's transfer credits (within the meaning of paragraph 717‑15(1)(c)) from the joining year, do not include the amount of the joining entity's *excess foreign tax credits from a non‑membership period (if any) that ends at the same time the joining year ends.
[The next Subdivision is Subdivision 717‑D.]

Subdivision 717‑D—Attributable