Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:5_9
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 5 cl 9
Character Range: 72545–74370

9                                      Item 1 of the table in section 208‑145 does not apply to the *head company

Note 1: Any surplus in the subsidiary's franking account will be transferred to the head company's franking account: see subsection 709‑60(2).

Note 2: If the subsidiary's franking account is in deficit, it will be liable for franking deficit tax: see subsection 709‑60(3). This deficit may be increased by item 4 in the table in subsection (2).

Note 3: The subsidiary's franking account does not operate while it is a member of the group: see section 709‑65.

709‑170  Head company and subsidiary are exempting entities

  There is no change to the status of the *head company of a *consolidated group if:
 (a) the head company is an *exempting entity; and
 (b) a *corporate tax entity becomes a *subsidiary member of the group at a time (also the joining time); and
 (c) the entity is an exempting entity at the joining time.

Note 1: If the subsidiary's franking account is in surplus, that surplus will be transferred to the head company's franking account: see subsection 709‑60(2).

Note 2: If the subsidiary's franking account is in deficit, it will be liable for franking deficit tax: see subsection 709‑60(3).

Note 3: The subsidiary's franking account does not operate while it is a member of the group: see section 709‑65.

709‑175  Head company is former exempting entity

 (1) Subsection (2) operates if:
 (a) the *head company of a *consolidated group is a *former exempting entity; and
 (b) a *corporate tax entity becomes a *subsidiary member of the group at a time (also the joining time); and
 (c) the entity is an *exempting entity at the joining time.

 (2) These rules apply to the *consolidated group.

Rules applying to *consolidated group
Item                                   Rule