• C2 – Assets

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    Section

    Title

    Currency date

    C2

    Assets

     

    C2-0

    About this section

    6 May 2011

    C2-1

    Treatment of assets

    6 May 2011

    C2-1-010

    Overview of cost setting process on formation and entry (including transitional rules)

    6 May 2011

    C2-1-020

    Calculating the entry ACA (step A)

    6 May 2011

    C2-1-030

    Allocating the entry ACA (steps B to E)

    6 May 2011

    C2-1-040

    Modifications to entry cost setting rules

    6 May 2011

    C2-1-050

    Dealing with errors in TCSAs and changes in liabilities when discharged

    6 May 2011

    C2-1-060

    Cost setting on exit

    6 May 2011

    C2-1-070

    Treatment of special classes of assets

    15 July 2011

    C2-1-080

    Treatment of assets relating to straddle contracts (Withdrawn 6 May 2011)

     

    C2-1-310

    Linked assets and liabilities

    6 May 2011

    C2-1-410

    CGT events arising out of the cost setting rules

    6 May 2011

    C2-2

    High-level worked examples

     

     

    Cost setting on entry:

     

    C2-2-110

    The cost setting process on entry

    6 May 2011

    C2-2-120

    Consolidated group joins another consolidated group

    6 May 2011

    C2-2-130

    Linked entities join a consolidated group

    28 May 2003

    C2-2-140

    A trust joins a consolidated group

    28 February 2008

    C2-2-150

    Partnership - all partners join consolidated group

    14 July 2004

    C2-2-155

    Partnership - not all partners join consolidated group

    6 May 2011

     

    Cost setting on exit:

     

    C2-2-210

    The cost setting process on exit

    6 May 2011

    C2-3

    Worksheets:

     

    C2-3-110

    Entry ACA worksheet

    6 May 2011

    C2-3-210

    Over-depreciation worksheet

    6 May 2011

    C2-4

    Worked examples (cost setting on entry)

     

     

    Entry step A (ACA calculation):

     

    C2-4-105

    Transitional entities and chosen transitional entities

    16 December 2005

    C2-4-205

    Calculating the ACA for non-chosen subsidiary partly held by chosen transitional entity

    6 May 2011

    C2-4-220

    Amount to be used as cost for membership interests (ACA step 1)

    15 November 2006

    C2-4-240

    Reduction for intragroup liabilities on entry (in ACA step 2)

    28 February 2008

    C2-4-241

    Adjustment for employee shares (in ACA step 2)

    2 December 2002

    C2-4-242

    Determining the amount of a deferred tax liability to be used at ACA step 2, including use of administrative short cuts

    6 May 2011

    C2-4-245

    Adjustment at ACA step 2 to allow for timing differences between accounting and tax recognition of liabilities

    6 May 2011

    C2-4-246

    CGT event L7 and reconstruction of the ACA (Withdrawn 6 May 2011)

     

    C2-4-260

    Estimating undistributed, frankable profits accruing to group before joining time (ACA step 3)

    6 May 2011

    C2-4-261

    Determining undistributed, taxed (frankable) profits accrued to group before joining time (ACA step 3)

    6 May 2011

    C2-4-270

    Pre-joining time rollover from foreign-resident company or a company that becomes the head company (ACA step 3A)

    6 May 2011

    C2-4-280

    Adjustment at formation for distributions of profits to head company (ACA step 4)

    26 October 2005

    C2-4-300

    Adjustments for losses (ACA steps 5 and 6)

    30 June 2009

    C2-4-340

    Adjustment for certain inherited deductions (ACA step 7)

    6 May 2011

     

    Entry step B (allocate to retained cost base assets):

     

    C2-4-410

    Tax cost setting amount for retained cost base assets - entitlement to pre-paid services

    6 May 2011

     

    Entry step C (allocate to reset cost base assets):

     

    C2-4-520

    Tax cost setting amount for goodwill

    26 June 2007

    C2-4-530

    Reduction for revenue-like assets (step C)

    26 October 2005

    C2-4-540

    Adjustment for ACA allocation at formation to membership interests in subsidiaries with owned profits (step C)

    26 October 2005

     

    Entry step D (adjust for over-depreciated assets):

     

    C2-4-605

    Reduction for privatised depreciating assets (at step D)

    11 March 2005

    C2-4-610

    Reduction for over-depreciated assets (step D)

    6 May 2011

    C2-4-640

    Reduction for over-depreciated assets (step D) - administrative short cuts

    6 May 2011

     

    Entry step E (adjust for certain revenue-like assets):

     

    C2-4-710

    Limiting the tax cost setting amounts of revenue-like assets (step E)

    6 May 2011

     

    Pre-CGT assets on entry:

     

    C2-4-810

    Pre-CGT factor for assets of a joining entity

    15 July 2011

    C2-4-813

    Pre-CGT status of membership interests in a joining entity - pre-CGT proportion rules

    6 May 2011

    C2-4-820

    Pre-CGT factor for assets where subsidiary has membership interests in another member - formation before 10 February 2010

    6 May 2011

    C2-4-855

    Applying the continuing majority-owned entity test to multi-tiered structures

    26 October 2005

    C2-5

    Worked examples (cost setting on exit)

     

     

    Entry step A (ACA calculation):

     

    C2-5-220

    Increase for certain privatised depreciating assets (at exit ACA step 1)

    6 May 2011

    C2-5-240

    Adjustment for certain inherited deductions
    (exit ACA step 2)

    6 May 2011

    C2-5-260

    Adjustment for intragroup liabilities owed to a leaving entity on exit (in exit ACA step 3)

    6 May 2011

     

    Pre-CGT assets on exit:

     

    C2-5-710

    Pre-CGT membership interests in a leaving entity (with pre-CGT factor attached to assets)

    6 May 2011

    C2-5-713

    Pre-CGT membership interests in a leaving entity - per-CGT proportion rules

    6 May 2011

    C2-5-715

    Calculating pre-CGT membership interests in a multiple exit case (with pre-CGT factor attached to assets)

    6 May 2011

    C2-5-720

    Consolidated and MEC groups - CGT rollover relief

    6 May 2011

     

    Internally generated assets:

     

    C2-5-810

    Continuing majority-owned entity and internally generated assets

    2 December 2002

    C2-6

    Loss integrity measures and general value shifting regime:

     

    C2-6-110

    Effect of Subdivision 165-CC for steps one and two of the ACA calculation at formation and joining times

    28 May 2003

    C2-6-120

    Effect of Subdivision 165-CC where an entity leaves a consolidated group

    28 May 2003

    C2-6-130

    Effect of Subdivision 165-CD for consolidated groups

    6 May 2011

    C2-6-140

    Effect of Subdivision 165-CC for MEC groups

    28 May 2003

    C2-6-150

    Effect of Subdivision 165-CD for MEC groups

    28 May 2003

    C2-6-155

    Subdivision 165-CD widely held company concession for an eligible tier-1 company that is a head company of a consolidated or MEC group

    6 May 2011

    C2-6-160

    Application of the loss reduction method to consolidated and MEC groups

    6 May 2011

    C2-6-170

    General value shifting regime (GVSR)

    28 May 2003

     

    Worked examples:

     

    C2-6-510

    Formation time treatment of assets head company owns from a pre-consolidation changeover time

    28 May 2003

    C2-6-520

    Pre-formation changeover times - application of Subdivision 165-CC at formation (transitional period)

    28 May 2003

    C2-6-530

    Treatment of assets owned by head company at both formation time and pre-consolidation changeover time (no changeover time at formation)

    28 May 2003

    C2-6-540

    All assets in head company's loss denial pool become assets of leaving entity

    28 May 2003

      Last modified: 14 Jun 2014QC 17069