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NEW BUSINESS TAX SYSTEM (CONSOLIDATION AND OTHER MEASURES) ACT (NO. 1) 2002 - SCHEDULE 7

- Consolidation: foreign tax credits and exit history rule

Income Tax Assessment Act 1997

1
Section 717-20 (link note)

Repeal the link note.

2
At the end of Subdivision 717-A

Add:

717-30 Exit history rule does not treat leaving entity as having foreign tax credits
(1)
This section operates in relation to an income year if:

(a)
an entity (the leaving entity ) ceases to be a * subsidiary member of a * consolidated group before the end of that income year; and
(b)
the * head company of the group has * excess foreign tax credits from an earlier income year.
(2)
To avoid doubt, the leaving entity is not taken because of section 701-40 (the exit history rule) to have those * excess foreign tax credits.

(3)
It does not matter whether the * head company has those * excess foreign tax credits because of section 717-10 or 717-15 (whether in relation to the leaving entity or another entity) or because of another provision.

[The next Subdivision is Subdivision 717-D.]



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