Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-90
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CONSOLIDATED GROUPS
Division 703
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Consolidated groups and their members
Effects of choice to continue group after shelf company becomes new head company
SECTION 703-70
Consolidated group continues in existence with interposed company as head company and original entity as a subsidiary member
703-70(1)
The * consolidated group is taken not to have ceased to exist under subsection 703-5(2) because the company referred to in subsection 615-30(2) as the original entity ceases to be the * head company of the group.
703-70(2)
To avoid doubt, the interposed company is taken to have become the * head company of the * consolidated group at the completion time, and the original entity is taken to have ceased to be the head company at that time.
703-70(3)
A provision of this Part that applies on an entity becoming a * subsidiary member of a * consolidated group does not apply to an entity being taken to have become such a member as a result of this section, unless the provision is expressed to apply despite this subsection.
703-70(4)
To avoid doubt, subsection (3) does not affect the application of subsection 701-1(1) (the single entity rule).
View history note
Hide history noteThe * consolidated group is taken not to have ceased to exist under subsection 703-5(2) because the company referred to in subsection 615-30(2) as the original entity ceases to be the * head company of the group.
To avoid doubt, the interposed company is taken to have become the * head company of the * consolidated group at the completion time, and the original entity is taken to have ceased to be the head company at that time.
Note:
A further result is that the original entity is taken to have become a subsidiary member of the group at that time. Section 703-80 deals with the original entity ' s tax position for the income year that includes the completion time.
A provision of this Part that applies on an entity becoming a * subsidiary member of a * consolidated group does not apply to an entity being taken to have become such a member as a result of this section, unless the provision is expressed to apply despite this subsection.
Note:
An example of the effect of this subsection is that there is no resetting under section 701-10 of the tax cost of assets of the original entity that become assets of the interposed company because of subsection 701-1(1) (the single entity rule).
To avoid doubt, subsection (3) does not affect the application of subsection 701-1(1) (the single entity rule).
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