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-F - Interactions with Division 230 (financial arrangements)  

SECTION 715-380   Exit history rule not to affect certain matters related to Division 230 financial arrangements  

Spreading fees gain or loss

715-380(1)  
Subsection (2) applies if:


(a) an entity (the leaving entity ) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time ); and


(b) but for the cessation of membership and section 701-40 (the exit history rule), the *head company of the group would spread a fees gain or loss mentioned in section 230-160 over a period that ended after the leaving time.

715-380(2)  
Despite section 701-40 (the exit history rule), the *head company of the *consolidated group continues to spread the fees gain or loss over that period, in accordance with section 230-160 . Assessable income and deductions under section 701-61

715-380(3)  
Subsection (4) applies if:


(a) an entity (the leaving entity ) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time ); and


(b) but for the cessation of membership and section 701-40 (the exit history rule):


(i) an amount would be included in the assessable income of the *head company of the group under section 701-61 for an income year ending after the leaving time; or

(ii) the head company of the group would be entitled to a deduction under section 701-61 for an income year ending after the leaving time.

715-380(4)  
Despite section 701-40 (the exit history rule), the amount is included in the assessable income of the *head company for the income year, or the head company is entitled to the deduction for the income year.


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