INCOME TAX ASSESSMENT ACT 1997 - SECT 709.95 Payment of group liability by former subsidiary member

INCOME TAX ASSESSMENT ACT 1997 - SECT 709.95

  (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:

  (i)   * pays a PAYG instalment for which it was jointly and severally liable under subsection   721 - 15(1) because it was a subsidiary member of the old group; or

  (ii)   * pays income tax for which it was jointly and severally liable under that subsection because it was a subsidiary member of the old group; and

  (c)   apart from this section, a * franking credit would arise under section   205 - 15 in the * franking account of the former subsidiary at a time (the crediting time ) because of that payment.

  (2)   The credit:

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

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