Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:5_3
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 5 cl 3
Character Range: 74861–75662

3                                      Subsection 709‑60(2) (about franking surplus) does not apply to the *subsidiary member

Note 1: If the subsidiary's franking account is in deficit, it will be liable for franking deficit tax: see subsection 709‑60(3).

Note 2: The subsidiary's franking account does not operate while it is a member of the group: see section 709‑65.

 (3) Subsection (4) operates if:
 (a) the *head company of a *consolidated group is a *former exempting entity; and
 (b) a *corporate tax entity becomes a *subsidiary member of the group at a time (also the joining time); and
 (c) the entity is a *former exempting entity at the joining time.

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

Rules applying to *consolidated group
Item                                   Rule