Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:6_5:p1
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 6 cl 5 (pt 1/2)
Character Range: 61767–64562

5                                                                    FIF attributed tax account debit                                                                                           Attribution debit

Note: Section 717‑265 may affect the calculation of the FIF attributed tax account surplus for the FIF in relation to the head company just before the leaving time.

717‑265  Calculating FIF income where a company leaves the group
 (1) This section modifies the operation of Part XI of the Income Tax Assessment Act 1936 in relation to a company (the transferor company) if:
 (a) the transferor company is the *head company of a *consolidated group at a time (the surplus time); and
 (b) for the purposes of that Part, the FIF attribution account percentage of the transferor company in relation to a FIF attribution account entity that is a *FIF is more than nil at the surplus time; and
 (c) another company (the leaving company) ceases to be a *subsidiary member of the group at the time (the leaving time) just after the surplus time; and
 (d) for the purposes of that Part, the leaving company's FIF attribution account percentage in relation to that FIF attribution account entity is more than nil at the leaving time.
 (2) That Part operates in relation to the transferor company as if a notional accounting period of the *FIF in relation to the transferor company ended at the time (the credit/debit time) just before the surplus time.
 (3) That Part operates in relation to the transferor company as if the next notional accounting period of the *FIF in relation to the transferor company started at the surplus time and continued until whichever of these times occurs first:
 (a) the time when a notional accounting period of the FIF in relation to the transferor company would have ended apart from this section;
 (b) the time when the period ends because of another application of this section.
 (4) That Part operates in relation to the transferor company as if subsection 485(3) of that Act provided that the operative provision applied to the transferor company in relation to the *FIF in respect of the notional accounting period of that FIF that ended in the year of income that included the credit/debit time.
 (5) Paragraph 538(2)(d) of that Act operates in relation to the leaving company in relation to the *FIF in respect of the notional accounting period of that FIF that included the leaving time as if:
 (a) the leaving company had acquired the interest or interests mentioned in that paragraph during that period (so far as those interests are held by the leaving company because it ceased to be a *subsidiary member of the group); and
 (b) the amount or value of the consideration paid or given by the leaving company in respect of the acquisition was equal