Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:11_73bae
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 11 cl 73BAE
Character Range: 145405–146618

73BAE  Recoupment where entity leaves group

 (1) All or part of an amount that would, apart from this subsection, be allowable as a deduction to the head company of a consolidated group or MEC group under section 73B or 73BA for a year of income is not allowable as such a deduction if:
 (a) the expenditure that would have given rise to the deduction was incurred by another company that was a subsidiary member of the group; and
 (b) the other company ceased, during or after that year of income, to be a subsidiary member of the group; and
 (c) the other company would have been denied a deduction for all or that part of the amount for that year of income because it received a recoupment or grant to which section 73C would apply if the other company had never been a subsidiary member of the group.

 (2) The other company must, within 60 days after the end of the financial year in which it received or became entitled to receive the recoupment or grant, give the head company details in the approved form of the part of the initial clawback amount for the recoupment or grant (see section 73C) to be applied by the head company in determining the reduction in the amount referred to in subsection (1).