INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-E - Interactions with Division 775 (Foreign currency gains and losses)  

SECTION 715-370   Cost setting - reference time for determining currency exchange rate effect  

715-370(1)  
This section applies if:


(a) an entity (the joining entity ) becomes a *subsidiary member of a *consolidated group at a time (the joining time ); and


(b) taking into account the operation of subsection 701-1(1) (the single entity rule), the *head company of the group held an asset at the joining time because the joining entity became a subsidiary member of the group; and


(c) the asset is a reset cost base asset at the joining time (within the meaning of section 705-35 ); and


(d) in working out the asset's *tax cost setting amount, the currency exchange rate of a particular *foreign currency is taken into account in determining the *market value of the asset.

715-370(2)  
For the purposes of Division 775 , determine the extent of any *currency exchange rate effect after the joining time in relation to the asset, by reference to the currency exchange rate for the *foreign currency at the joining time.


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