Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 17/19)
Character Range: 3794265–3796948

section 208‑40 for the purposes of working out whether another *corporate tax entity is an *exempting entity at a particular time because it is effectively owned by prescribed persons within the meaning of section 208‑25.
 (2) However, this section does not prevent the company from being taken under section 208‑45 to be a prescribed person for those purposes.

220‑510  Parent company's status as prescribed person sets status of all other members of same wholly‑owned group
 (1) This section has effect for the purposes of working out whether a company is an *exempting entity at a particular time because it is effectively owned by prescribed persons within the meaning of section 208‑25, if:
 (a) at the time the company is a *100% subsidiary of another company (the parent company) that is not a 100% subsidiary of another member of the same *wholly‑owned group; and
 (b) at the time the parent company is a *post‑choice NZ franking company; and
 (c) there is at least one company (the non‑Tasman company) that meets all these conditions:
 (i) the non‑Tasman company is neither an Australian resident nor an *NZ resident at the time;
 (ii) the non‑Tasman company is a member of the same wholly‑owned group at the time;
 (iii) the non‑Tasman company is interposed between the parent company and a company that, at the time, is an Australian resident or a post‑choice NZ franking company.
 (2) At the time, each company that is a *100% subsidiary of the parent company is a prescribed person if the parent company is a prescribed person at the time for those purposes because of section 208‑40 or 208‑45 (taking account of section 220‑505, if relevant).
 (3) At the time, each company that is a *100% subsidiary of the parent company is not a prescribed person if the parent company is not a prescribed person for those purposes because of section 208‑40 or 208‑45 (taking account of section 220‑505, if relevant).
 (4) This section has effect despite sections 208‑40, 208‑45 and 220‑505 so far as those sections apply in relation to a *100% subsidiary of the parent company.

NZ franking companies' exempting accounts

220‑605  Effect on exempting account if NZ franking choice ceases to be in force
 (1) This section has effect if:
 (a) a company has made an *NZ franking choice; and
 (b) the choice is revoked or cancelled at a time (the end time); and
 (c) immediately before the end time:
 (i) the company is a foreign resident; and
 (ii) the company is a *former exempting entity.

Exempting debit if exempting surplus just before end time
 (2) An *exempting debit arises in the company's *exempting account at the end time if the account was in *surplus immediately before