Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_4:p3
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 3/3)
Character Range: 63300–65175

that, if the joining year starts at the same time as the earliest of those non‑membership periods, section 770‑230 operates in relation to the joining entity for that non‑membership period.

770‑300  Pre‑commencement excess foreign income tax lost on joining consolidated group

 (1) For the purposes of section 770‑220 in relation to an income year ending after the time an entity becomes a subsidiary member of a consolidated group, the entity is taken not to have any pre‑commencement excess foreign income tax from an income year, or non‑membership period described in section 701‑30 of the 1997 Act, that ended before or at that time.

 (2) Subsection (1) does not affect the operation of section 770‑220 in accordance with section 770‑290.

770‑305  Exit history rule does not treat leaving entity as having pre‑commencement excess foreign income tax

 (1) This section operates in relation to an income year if:
 (a) an entity (the leaving entity) ceases to be a subsidiary member of a consolidated group before the end of that income year; and
 (b) the head company of the group has pre‑commencement excess foreign income tax from an earlier income year.

 (2) To avoid doubt, the leaving entity is not taken because of section 701‑40 of the 1997 Act (the exit history rule) to have that pre‑commencement excess foreign income tax.

 (3) It does not matter whether the head company has that pre‑commencement excess foreign income tax because of section 717‑10 of the 1997 Act or 770‑290 (whether in relation to the leaving entity or another entity) or because of another provision.

770‑310  Application of Subdivision to MEC groups

  This Subdivision has effect in relation to a MEC group in the same way in which it has effect in relation to a consolidated group.

Part 4—Consequential and other amendments

A New Tax System (Goods and Services Tax) Act 1999