Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:10_1:p12
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 10 cl 1 (pt 12/13)
Character Range: 79554–82275

the time the company is a *100% subsidiary of another company (the parent company) that is not a 100% subsidiary of another member of the same *wholly‑owned group; and
 (b) at the time the parent company is a *post‑choice NZ franking company; and
 (c) there is at least one company (the non‑Tasman company) that meets all these conditions:
 (i) the non‑Tasman company is neither an Australian resident nor an *NZ resident at the time;
 (ii) the non‑Tasman company is a member of the same wholly‑owned group at the time;
 (iii) the non‑Tasman company is interposed between the parent company and a company that, at the time, is an Australian resident or a post‑choice NZ franking company.

 (2) At the time, each company that is a *100% subsidiary of the parent company is a prescribed person if the parent company is a prescribed person at the time for those purposes because of section 208‑40 or 208‑45 (taking account of section 220‑505, if relevant).

 (3) At the time, each company that is a *100% subsidiary of the parent company is not a prescribed person if the parent company is not a prescribed person for those purposes because of section 208‑40 or 208‑45 (taking account of section 220‑505, if relevant).

 (4) This section has effect despite sections 208‑40, 208‑45 and 220‑505 so far as those sections apply in relation to a *100% subsidiary of the parent company.

[The next section is section 220‑600.]

NZ franking companies' exempting accounts

220‑600  Keeping exempting accounts in Australian currency

  An *exempting account of an *NZ franking company must be kept in Australian currency.

220‑605  Effect on exempting account if NZ franking choice ceases to be in force

 (1) This section has effect if:
 (a) a company has made an *NZ franking choice; and
 (b) the choice is revoked or cancelled at a time (the end time); and
 (c) immediately before the end time:
 (i) the company is not an Australian resident; and
 (ii) the company is a *former exempting entity.

Exempting debit if exempting surplus just before end time

 (2) An *exempting debit arises in the company's *exempting account at the end time if the account was in *surplus immediately before that time. The amount of the debit equals the *exempting surplus.

If exempting deficit just before end time

 (3) If the company's *exempting account was in *deficit immediately before the end time:
 (a) a *franking debit equal to that deficit arises in the company's *franking account immediately before the end time; and
 (b) an *exempting credit equal to that deficit arises in the company's exempting account at the end time.

[The next section is section 220‑700.]

Tax effect of distribution franked by NZ franking company with