Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:5_4
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 5 cl 4
Character Range: 66881–68894

4  At the end of Division 709
Add:

Subdivision 709‑B—Imputation issues

Guide to Subdivision 709‑B

709‑150  What this Subdivision is about

      This Subdivision modifies the way Division 208 (exempting entities and former exempting entities) operates in relation to consolidated groups.

Table of sections

Operative provisions

709‑155 Testing consolidated groups
709‑160 Subsidiary member is exempting entity
709‑165 Subsidiary member is former exempting entity
709‑170 Head company and subsidiary are exempting entities
709‑175 Head company is former exempting entity

[This is the end of the Guide.]

Operative provisions

709‑155  Testing consolidated groups

 (1) To determine whether a *consolidated group is an *exempting entity or *former exempting entity, the tests in Division 208 are applied to the *head company of the group.

 (2) However, there are some additional rules that can alter the way that Division 208 applies to a *consolidated group. These are set out in sections 709‑160 to 709‑175.

 (3) In applying those rules to an entity that is a *member of a *consolidated group:
 (a) Division 208 is to be applied before those rules; and
 (b) that Division is to be applied just after the entity became a member of the group but, for a *subsidiary member, it is to be applied on the assumption that the subsidiary was not a member of the group at that time.

 (4) Except as mentioned in paragraph (3)(b), Division 208 has no application to a *subsidiary member of a *consolidated group.

709‑160  Subsidiary member is 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 (the joining time); and
 (c) the entity is an *exempting entity at the joining time.

 (2) These rules apply to the *consolidated group.

Rules applying to *consolidated group
Item                                   Rule