Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 701 - Core rules  

Common rule  

SECTION 701-1   Single entity rule  

701-1(1)    
If an entity is a ^* subsidiary member of a ^* consolidated group for any period, it and any other subsidiary member of the group are taken for the purposes covered by subsections (2) and (3) to be parts of the ^* head company of the group, rather than separate entities, during that period.

Head company core purposes

701-1(2)    
The purposes covered by this subsection (the head company core purposes ) are:

(a) working out the amount of the ^* head company's liability (if any) for income tax calculated by reference to any income year in which any of the period occurs or any later income year; and

(b) working out the amount of the head company's loss (if any) of a particular ^* sort for any such income year.

Note:

The single entity rule would affect the head company's income tax liability calculated by reference to income years after the entity ceased to be a member of the group if, for example, assets that the entity held when it became a subsidiary member remained with the head company after the entity ceased to be a subsidiary member.

Entity core purposes

701-1(3)    
The purposes covered by this subsection (the entity core purposes ) are:

(a) working out the amount of the entity's liability (if any) for income tax calculated by reference to any income year in which any of the period occurs or any later income year; and

(b) working out the amount of the entity's loss (if any) of a particular ^* sort for any such income year.

Note:

An assessment of the entity's liability calculated by reference to income tax for a period when it was not a subsidiary member of the group may be made, and that tax recovered from it, even while it is a subsidiary member.

What is a sort of loss?

701-1(4)    
Each of these paragraphs identifies a sort of loss:

(a) ^* tax loss;

(b) ^* film loss;

(c) ^* net capital loss.

(d) (Repealed by No 143 of 2007 )

(e) (Repealed by No 143 of 2007 )

(f) (Repealed by No 143 of 2007 )

(g) (Repealed by No 143 of 2007 )

This subsection lists all the sorts of loss.