Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:2_56
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 2 cl 56
Character Range: 124276–125910

56  After section 717‑20
Insert:

717‑22  Excess foreign tax credits from non‑membership period ending before head company's income year starts

 (1) This section operates for the purposes of section 160AFE of the Income Tax Assessment Act 1936 in relation to an income year (the first use year) of the *head company of a *consolidated group and later income years of the head company if:
 (a) an entity (the joining entity) becomes a *subsidiary member of the group at a time (the joining time) that is before or at the start of the head company's first use year but after the start of the same income year of the joining entity (because that income year starts at different times for the head company and the joining entity); and
 (b) the joining entity has *excess foreign tax credits (the transfer credits) from the non‑membership period described in section 701‑30 that starts at the start of that income year of the joining entity and ends just before the joining time.

Note: Under section 701‑30, the non‑membership period is treated like an income year.

 (2) For those purposes relating to an income year shown in an item of the table, the *head company of the group is taken to have the amount of the transfer credits shown in the item from its earlier income year shown in the item included in its other *excess foreign tax credits (if any) from that earlier income year.

Head company's transfer credits
                                 For this income year:                    The head company is taken to have this amount of the transfer credits:                                         From this earlier income year: