Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_88:p2
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 88 (pt 2/3)
Character Range: 105503–108141

entity carried on at and just after the joining time the same business that it carried on just before the joining time.
 (7) If the *FRT disallowed amount was for an income year all or part of which occurs in the trial year, the transfer of the FRT disallowed amount under subsection (2) is not prevented by the fact that the FRT disallowed amount was for that income year.
 (8) If, apart from this subsection, the *head company of the joined group would have 2 or more *FRT disallowed amounts (the transferred FRT disallowed amounts) for a particular income year as a result of the operation of subsection (2):
 (a) treat it as having only one FRT disallowed amount for the income year; and
 (b) treat that one FRT disallowed amount as being equal to the sum of the transferred FRT disallowed amounts.

820‑591  Effect of transfer of FRT disallowed amount
 (1) This section applies if an *FRT disallowed amount is transferred under section 820‑590 from the joining entity to the *head company of the joined group.
 (2) For the purposes of subsection 820‑59(4), this Act operates (except so far as the contrary intention appears) for the purposes of income years ending after the joining time as if the head company had the *FRT disallowed amount for the income year in which the joining time occurs.
 (3) For the purposes of applying subsection 820‑59(4) in relation to the *FRT disallowed amount, treat the disallowance year mentioned in paragraph 820‑59(4)(b) as starting at the time of the transfer.

820‑592  Cancelling the transfer of FRT disallowed amount
 (1) The *head company of the joined group may choose to cancel the transfer of the FRT disallowed amount under section 820‑590.
 (2) If the *head company of the joined group does so, this Act (except this section) operates for all income years ending after the transfer as if it had not occurred under section 820‑590.
 (3) The choice cannot be revoked.

820‑593  FRT disallowed amount cannot be applied for income year ending after the joining time
  To the extent that the *FRT disallowed amount is not transferred under section 820‑590 from the joining entity to the *head company of the joined group, the FRT disallowed 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.