INCOME TAX ASSESSMENT ACT 1997 - SECT 709.70 Credits arising in head company's franking account

INCOME TAX ASSESSMENT ACT 1997 - SECT 709.70

  (1)   This section operates if a credit would arise in the * franking account of a * subsidiary member of a * consolidated group at a time (the crediting time ) apart from section   709 - 65.

  (2)   A credit arises in the * franking account of the * head company of the group at the crediting time.

Note:   A credit can also arise in the head company's franking account at any time under section   205 - 15.

  (3)   The amount of the credit is the same as the amount of the credit that would arise in the * franking account of the * subsidiary member.

  (4)   This section does not apply to a credit arising in the * subsidiary member's * franking account under paragraph   709 - 60(3)(a).

Note:   Such a credit arises if the entity that became the subsidiary member had a deficit in its franking account just before the time it became the subsidiary member. The credit equals the deficit, creating a nil balance in the account from that time.