Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 5/6)
Character Range: 6048987–6051789

liability by former subsidiary member

709‑95  Payment of group liability by former subsidiary member
 (1) This section operates if:
 (a) an entity (the former subsidiary) ceases to be a *subsidiary member of a *consolidated group (the old group) at a particular time (the leaving time); and
 (b) at or after the leaving time, the former subsidiary:
 (i) *pays a PAYG instalment for which it was jointly and severally liable under subsection 721‑15(1) because it was a subsidiary member of the old group; or
 (ii) *pays income tax for which it was jointly and severally liable under that subsection because it was a subsidiary member of the old group; and
 (c) apart from this section, a *franking credit would arise under section 205‑15 in the *franking account of the former subsidiary at a time (the crediting time) because of that payment.
 (2) The credit:
 (a) does not arise at the crediting time in the *franking account of the former subsidiary; and
 (b) instead, arises at the crediting time in the franking account of the entity that was the *head company of the old group at the leaving time.

709‑100  Refund of income tax to former subsidiary member
 (1) This section operates if:
 (a) an entity (the former subsidiary) ceases to be a *subsidiary member of a *consolidated group (the old group) at a particular time (the leaving time); and
 (b) at or after the leaving time, the former subsidiary *receives a refund of income tax or *receives a refund of diverted profits tax, for which it was jointly and severally liable under subsection 721‑15(1) because it was a subsidiary member of the old group; and
 (c) apart from this section, a *franking debit would arise under section 205‑30 in the *franking account of the former subsidiary at a time (the debiting time) because of that payment.
 (2) The debit:
 (a) does not arise at the debiting time in the *franking account of the former subsidiary; and
 (b) instead, arises at the debiting time in the franking account of the entity that was the *head company of the old group at the leaving time.

Subdivision 709‑B—Imputation issues

Guide to Subdivision 709‑B

709‑150  What this Subdivision is about
      This Subdivision modifies the way Division 208 (exempting entities and former exempting entities) operates in relation to consolidated groups.

Table of sections

Operative provisions
709‑155 Testing consolidated groups
709‑160 Subsidiary member is exempting entity
709‑165 Subsidiary member is former exempting entity
709‑170 Head company and subsidiary are exempting entities
709‑175 Head company is former exempting entity

Operative provisions

709‑155  Testing consolidated groups
 (1) To determine whether a *consolidated group is an *exempting entity or *former exempting entity, the tests in Division 208 are applied to