This Draft TD, issued on Wed 11.12.2013, states that a franking credit arises in the franking account of a head company of a consolidated group when a franked distribution is made by an entity that is not a member of a consolidated group to a trust that is a subsidiary member of the consolidated group. It states that this is provided the head company is entitled to a tax offset under Div 207 of the ITAA 1997 and a franking credit will arise in the head company’s franking account on the day the distribution is made.

DATE OF EFFECT: When the final Determination is issued, it is proposed to apply both before and after its date of issue.

COMMENTS are due by 24 January 2014. ATO contact: Joseph Camenzuli – Tel: (03) 9275 4419; Fax (03) 9275 5125; Email:

[LTN 240, 10/12/13]

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