Section FN 12 — Income Tax Act 2007: Company no longer eligible or entitled to membership

FN 12 Company no longer eligible or entitled to membership When this section applies (1) This section applies when a company is no longer eligible to be part of an imputation group or, if it is not the nominated company, when it is no longer entitled to be part of the same imputation group as the nominated company. Effective date (2) Unless subsections (3) or (4) apply, the company is treated as no longer part of the imputation group from the start of the tax year in which the relevant event occurs, making it no longer— (a) eligible to be part of the imputation group; or (b) if it is not the nominated company, entitled to be part of the same imputation group as the nominated company. Notifying date (3) Despite subsection (2), the company may notify the Commissioner that it is no longer to be treated as part of the imputation group from the date on which its eligibility or its entitlement ended. The company must provide the notice within 30 days after the date on which the company’s eligibility or entitlement ended, although the Commissioner may agree to extend this period if it is reasonable to do so in the circumstances. First tax year (4) Despite subsections (2) and (3), if a company leaves an imputation group in the same tax year in which it became part of the imputation group, the company is treated as leaving the group on the date when it became part of the imputation group, and not at the start of the tax year. Anti-avoidance measure (5) A notice under this section is not valid if it is made in connection with an arrangement entered into for a purpose of enabling the company to leave an imputation group so as to defeat the intent and application of the imputation rules. When this subsection applies, the company is treated as leaving the imputation group on the date on which its eligibility or entitlement ended. Defined in this Act: arrangement , Commissioner , company , imputation group , imputation rules , nominated company , notice , notify , tax year , Compare: 2004 No 35 s FDA 6(3), (4), (7), (8)