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.


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