Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_5:p7
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 7/10)
Character Range: 164379–167103

not operate during the period:
 (a) beginning just after the entity becomes a subsidiary member of the group; and
 (b) ending when the entity ceases to be a subsidiary member of the group.

Treatment of head company's franking account

709‑70  Credits arising in head company's franking account

 (1) This section operates if a credit would arise in the *franking account of a *subsidiary member of a *consolidated group at a time (the crediting time) apart from section 709‑65.

 (2) A credit arises in the *franking account of the *head company of the group at the crediting time.

Note: A credit can also arise in the head company's franking account at any time under section 160‑115.

 (3) The amount of the credit is the same as the amount of the credit that would arise in the *franking account of the *subsidiary member.

 (4) This section does not apply to a credit arising in the *subsidiary member's *franking account under paragraph 709‑60(3)(a).

Note: Such a credit arises if the entity that became the subsidiary member had a deficit in its franking account just before the time it became the subsidiary member. The credit equals the deficit, creating a nil balance in the account from that time.

709‑75  Debits arising in head company's franking account

 (1) This section operates if a debit would arise in the *franking account of a *subsidiary member of a *consolidated group at a time (the debiting time) apart from section 709‑65.

 (2) A debit arises in the *franking account of the *head company of the group at the debiting time.

Note: A debit can also arise in the head company's franking account at any time under section 160‑130.

 (3) The amount of the debit is the same as the amount of the debit that would arise in the *franking account of the *subsidiary member.

 (4) This section does not apply to a debit arising in the *subsidiary member's *franking account under paragraph 709‑60(2)(a).

Note: Such a debit arises if the entity that became the subsidiary member had a surplus in its franking account just before the time it became the subsidiary member. The debit equals the surplus, creating a nil balance in the account from that time.

Franking distributions by subsidiary member

709‑80  Subsidiary member's distributions on employee shares taken to be distributions by head company

 (1) This section operates if:
 (a) a *subsidiary member of a *consolidated group makes a *frankable distribution; and
 (b) the distribution is made because an entity (the shareholder) owns a *share in the subsidiary member; and
 (c) the share must be disregarded under subsection 703‑35(4); and
 (d) the distribution is made to the shareholder, or to another entity because the shareholder owns