Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 10/32)
Character Range: 7216602–7219460

amount cannot be applied under paragraph 820‑56(2)(b) by any entity in respect of an income year ending after the joining time.

820‑594  Treatment of FRT disallowed amounts—leaving case
  To avoid doubt, if the *head company of a *consolidated group has a *FRT disallowed amount and an entity ceases to be a *subsidiary member of the group, the entity is not taken because of section 701‑40 (the exit history rule) to have the FRT disallowed amount.

Subdivision 820‑FB—Grouping branches of foreign banks and foreign financial entities with a consolidated group, MEC group or single Australian resident company

Guide to Subdivision 820‑FB

820‑595  What this Subdivision is about
      If:

                (a) the head company of a consolidated group or MEC group; or
                (b) an Australian company that cannot consolidate;
      is a member of the same wholly‑owned group as a foreign bank or foreign financial entity, the company can choose to treat as part of itself the Australian branches of the foreign bank or foreign financial entity, affecting how the rest of this Division applies.

Table of sections

Choice to group with branches of foreign banks and foreign financial entities
820‑597 Choice by head company of consolidated group or MEC group
820‑599 Choice by Australian resident company outside consolidatable group and MEC group

Effect of choice
820‑601 Application
820‑603 General
820‑605 Effect on establishment entity if certain debt deductions disallowed
820‑607 Effect on test periods under this Division
820‑609 Effect on classification of head company or single company
820‑610 Choice not to be outward investing entity (ADI) or inward investing entity (ADI)
820‑611 Values to be based on what would be in consolidated accounts for group
820‑613 How Subdivision 820‑D applies
820‑615 How Subdivision 820‑E applies

Choice to group with branches of foreign banks and foreign financial entities

820‑597  Choice by head company of consolidated group or MEC group
 (1) This section applies if there is a period (the grouping period) for which all these conditions are met:
 (a) the period was all or part of an income year of the *head company of a *consolidated group or *MEC group;
 (b) the consolidated group or MEC group existed throughout the period;
 (c) the head company and an entity (the establishment entity) covered by one of the following subparagraphs are both members of the same *wholly‑owned group throughout the period:
 (i) a *foreign bank that carried on its banking *business in Australia through at least one *Australian permanent establishment at each time in the period;
 (ii) a *foreign entity that was a *financial entity and had at least one Australian permanent establishment at each time in the period;
 (d) there is not a longer period in the income year for which the conditions in paragraphs