Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 707 - Losses for head companies when entities become members etc.  

Subdivision 707-C - Amount of transferred losses that can be utilised  

How much of a transferred loss can be utilised?

SECTION 707-330   Losses transferred from former head company  

707-330(1)    
This section has effect for working out the ^* available fraction for a ^* bundle of losses if:

(a) an entity (the ex-head company ) becomes a ^* subsidiary member of a ^* consolidated group (the bigger group ) at a time (the joining time ); and

(b) just before the joining time the ex-head company was the ^* head company of another consolidated group (the old group ); and

(c) at the joining time the losses are transferred under Subdivision 707-A from the ex-head company to the head company of the bigger group.

707-330(2)    

Work out the ex-head company's ^* modified market value or * market value as if each ^* member of the bigger group that had been a ^* subsidiary member of the old group just before the joining time were a part of the ex-head company, and not a separate member of the bigger group, when the transfer occurred.

707-330(3)    
Also, work out the ex-head company's ^* modified market value as if each ^* subsidiary member of the old group had been a part of the ex-head company while it was a subsidiary member of the old group.