Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:8_9:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 8 cl 9 (pt 1/3)
Character Range: 192808–195638

9  At the end of Division 717
Add:

Subdivision 717‑F—Elections etc. relating to CFCs, FIFs and FLPs: entry rules

Guide to Subdivision 717‑F

717‑270  What this Subdivision is about

      This Subdivision deals with the effect upon certain elections etc. relating to CFCs, FIFs and FLPs when an entity becomes a subsidiary member of a consolidated group.

Table of sections

Application and object

717‑275 Application
717‑280 Object of this Subdivision

Elections etc.

717‑285 Pre‑joining‑time irrevocable elections etc. by joining entity not inherited by head company
717‑290 Pre‑joining‑time actions of joining entity do not prevent head company from electing to apply the calculation method

[This is the end of the Guide.]

Application and object

717‑275  Application

  This Subdivision operates for the purposes of Part X and Part X1 of the Income Tax Assessment Act 1936 if an entity (the joining entity) becomes a *subsidiary member of a *consolidated group at a time (the joining time).

717‑280  Object of this Subdivision

  The object of this Subdivision is to provide:
 (a) that the *head company of the *consolidated group does not inherit the joining entity's irrevocable declarations, elections, choices or selections; and
 (b) that pre‑joining‑time actions of the joining entity do not prevent the head company from electing to apply the calculation method to determine whether foreign investment fund income accrued from a FIF.

Elections etc.

717‑285  Pre‑joining‑time irrevocable elections etc. by joining entity not inherited by head company

  If at the joining time an irrevocable declaration, election, choice or selection made by the joining entity under Part X or XI of the Income Tax Assessment Act 1936 is in force, then, for the head company core purposes, the *head company of the group is not taken to have made the declaration, election, choice or selection.

Note 1: The entry history rule in section 701‑5 would otherwise have had the effect that the head company is taken to have made the declaration etc.

Note 2: Declarations etc. actually made by the head company would apply to interests in CFCs, FIFs or FLPs of which the head company becomes the holder under the single entity rule as a result of the joining entity becoming a subsidiary member.

717‑290  Pre‑joining‑time actions of joining entity do not prevent head company from electing to apply the calculation method

  Any entitlement of the *head company of the group to make an election under subsection 535(3) of the Income Tax Assessment Act 1936 for the head company core purposes is not affected by anything done by the joining entity before the joining time.

Note: The entry history rule in section 701‑5 would otherwise have had the effect that actions of the joining entity would be treated as those of the