Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:9_1:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 9 cl 1 (pt 1/5)
Character Range: 198702–201350

1  At the end of Division 717
Add:

Subdivision 717‑J—Foreign dividend accounts

Guide to Subdivision 717‑J

717‑500  What this Subdivision is about

      Only the head company of a consolidated group has an operating foreign dividend account, so only the head company can make an FDA declaration to relieve from withholding tax a dividend paid by a member of the group to a foreign resident. The balance of the account reflects what has happened to all members of the group.

Table of sections

Object

717‑505 Object of this Subdivision

Treatment of foreign dividend accounts around joining time

717‑510 No FDA surplus for joining company

Single entity rule for foreign dividend accounts

717‑515 Single entity rule for FDA credits and FDA debits

FDA declaration for dividend paid by subsidiary member

717‑520 Head company may make FDA declaration
717‑525 Multiple FDA declarations for dividends paid on same day
717‑530 Extended operation of sections 717‑520 and 717‑525

[This is the end of the Guide.]

Object

717‑505  Object of this Subdivision

 (1) The object of this Subdivision is to affect the operation of Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936 so that each *consolidated group operates a single *foreign dividend account, by ensuring that:
 (a) an *FDA credit and an *FDA debit arise so that:
 (i) the balance of the foreign dividend account of the *head company of the group reflects the balance of the foreign dividend account of a company that becomes a *subsidiary member of the group; and
 (ii) the balance of the foreign dividend account of the subsidiary member of the group is nil; and
 (b) the head company is the only *member of the group that can have an *FDA surplus; and
 (c) the head company can make an *FDA declaration relating to a dividend (within the meaning of that Subdivision) or *non‑share dividend paid by any member of the group.

 (2) In this Act:

FDA credit has the same meaning as in Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936.

FDA debit has the same meaning as in Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936.

FDA declaration has the same meaning as in Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936.

FDA surplus has the same meaning as in Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936.

foreign dividend account has the same meaning as in Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936.

Treatment of foreign dividend accounts around joining time

717‑510  No FDA surplus