Taxation Administration Act 1953

When the Commissioner makes an assessment:

of the income tax that the *head company of a *consolidated group is liable to pay for a *consolidation transitional year for the head company; or

that no income tax is payable by the head company for that year;

The credit is equal to:

the sum of so much of each instalment payable by the entity (even if it has not paid it) for an *instalment quarter of a *consolidation transitional year for the entity, or for that year, as is reasonably attributable to so much of that quarter or year:

which is, or is included in, the consolidation transitional year for the *head company; and

during which the entity is a *subsidiary member of the group;

the sum of so much of each credit that the entity has claimed under section 45‑215 or 45‑420 for each instalment quarter covered by paragraph (a) as is reasonably attributable to:

for a credit under section 45‑215—so much of the preceding instalment quarters of that consolidation transitional year for the entity which is covered by subparagraphs (a)(i) and (ii); or

for a credit under section 45‑420—so much of that instalment quarter and the preceding instalment quarters of that consolidation transitional year for the entity which is covered by subparagraphs (a)(i) and (ii).

To avoid doubt, if:

during the *instalment quarter or the *consolidation transitional year mentioned in paragraph (2)(a), the entity is a *subsidiary member of:

2 or more *consolidated groups; or

one or more consolidated groups and one or more *MEC groups; and

an amount is taken into account under that paragraph or paragraph (2)(b) in working out the credit to which the *head company of one of the groups is entitled under subsection (1);

A reference in subsection (3) to subsection (1) or paragraph (2)(a) or (b) includes a reference to that provision in its extended operation in relation to a *MEC group under Subdivision 45‑S.

This section applies to members of a MEC group with the modifications set out in section 45‑930.