INCOME TAX ASSESSMENT ACT 1997 - SECT 709.100 Refund of income tax to former subsidiary member

INCOME TAX ASSESSMENT ACT 1997 - SECT 709.100

  (1)   This section operates if:

  (a)   an entity (the former subsidiary ) ceases to be a * subsidiary member of a * consolidated group (the old group ) at a particular time (the leaving time ); and

  (b)   at or after the leaving time, the former subsidiary * receives a refund of income tax or * receives a refund of diverted profits tax, for which it was jointly and severally liable under subsection   721 - 15(1) because it was a subsidiary member of the old group; and

  (c)   apart from this section, a * franking debit would arise under section   205 - 30 in the * franking account of the former subsidiary at a time (the debiting time ) because of that payment.

  (2)   The debit:

  (a)   does not arise at the debiting time in the * franking account of the former subsidiary; and

  (b)   instead, arises at the debiting time in the franking account of the entity that was the * head company of the old group at the leaving time.