Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_4:p17
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 17/22)
Character Range: 904799–907443

amount is not to be taken into account in working out the credit to which the head company of another of those groups is entitled under that subsection.
 (4) A reference in subsection (3) to subsection (1) or paragraph (2)(a) or (b) includes a reference to that provision in its extended operation in relation to a *MEC group under Subdivision 45‑S.
Note: This section applies to members of a MEC group with the modifications set out in section 45‑930.

45‑870  Head company's liability to GIC on shortfall in quarterly instalment

Liability for the general interest charge
 (1) Subject to subsections (3) and (4), the *head company of a *consolidated group is liable to pay the *general interest charge under this section for an *instalment quarter in a *consolidation transitional year for the head company if:
 (a) the instalment payable by at least one *member of the group for that quarter is worked out:
 (i) under paragraph 45‑112(1)(b) or (c); or
 (ii) by using an instalment rate under section 45‑205; and
 (b) the sum of instalments payable by the members of the group for that quarter, reduced by credits claimed by those members under section 45‑215 or 45‑420 for that quarter, is less than 17/80 of the head company's *benchmark tax for that consolidation transitional year.
Note: 17/80 of the head company's benchmark tax represents an amount that is 85% of one quarter of that benchmark tax.

Amount on which the charge is payable
 (2) Subject to subsections (3) and (4), the *general interest charge is payable on the amount worked out in accordance with the following method statement (if the amount is a positive amount).

      Method statement
           Step 1. Work out the amount that is 1/4 of the *benchmark tax of the *head company for that *consolidation transitional year of that head company.
           Step 2. Work out the sum of instalments that would have been payable by all the *members of the group for that *instalment quarter of that *head company if none of the members had worked out its instalment for that quarter under paragraph 45‑112(1)(b) or (c) or by using an instalment rate under section 45‑205.
           Step 3. Work out the sum of instalments payable by all the *members of the group for that *instalment quarter, reduced by credits claimed by the members under section 45‑215 or 45‑420 for that quarter.
           Step 4. Reduce the lesser of the results of steps 1 and 2 by the result of step 3. The result of this step is the amount on which the *general interest charge is payable if it is a positive amount. No general interest charge is payable if the result of this step is nil or a