Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:9_1:p2
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 9 cl 1 (pt 2/5)
Character Range: 201106–203670

Tax Assessment Act 1936.

foreign dividend account has the same meaning as in Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936.

Treatment of foreign dividend accounts around joining time

717‑510  No FDA surplus for joining company

 (1) This section operates for the purposes of Subdivision B of Division 11A of Part III of the Income Tax Assessment Act 1936 if a company (the joining company) becomes a *subsidiary member of a *consolidated group at a time (the joining time) just after another time (the balance time).

 (2) If the joining company has an *FDA surplus at the balance time:
 (a) an *FDA debit equal to the FDA surplus arises for the joining company at the balance time; and
 (b) an *FDA credit equal to the FDA surplus arises for the *head company of the group at the joining time.

 (3) If the joining company's total *FDA debits arising before the balance time exceed its total *FDA credits arising before the balance time:
 (a) an FDA credit equal to the excess arises for the joining company at the balance time; and
 (b) an FDA debit equal to the excess arises for the *head company of the group at the joining time.

 (4) For the purposes of subsections (2) and (3) of this section, work out whether, when, and how much (if any) of, an *FDA debit arises for the joining company under paragraph 128TB(1)(d) of the Income Tax Assessment Act 1936 in relation to the income year that actually includes the balance time as if that income year:
 (a) started at:
 (i) the start of that income year; or
 (ii) if the joining company ceased to be a *subsidiary member of a *consolidated group after the start of that income year but before the balance time—the time the joining company last ceased to be a subsidiary member of a consolidated group before the balance time; and
 (b) ended just before the balance time.

Note: This ensures that the FDA debit (if any) for the joining company under paragraph 128TB(1)(d) of the Income Tax Assessment Act 1936 arises just before the balance time, so that it is taken into account for the purposes of subsections (2) and (3) of this section.

Single entity rule for foreign dividend accounts

717‑515  Single entity rule for FDA credits and FDA debits

  If a company is a *subsidiary member of a *consolidated group for any period, it and any other subsidiary member of the group are taken for the purposes of sections 128TA and 128TB of the Income Tax Assessment Act 1936 to be parts of the *head company of the group, rather than separate entities, during that period.