Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 705 - Tax cost setting amount for assets where entities become subsidiary members of consolidated groups  

Subdivision 705-A - Basic case: a single entity joining an existing consolidated group  

How to work out the allocable cost amount

SECTION 705-76   705-76   Liability arising from transfer or assignment of securitised assets  


This section covers an accounting liability (the securitisation liability ) if the following circumstances exist:


(a) (Repealed by No 14 of 2018)


(b) in working out the step 2 amount mentioned in subsection 705-70(1) in relation to the joining entity, an amount would be added under that subsection for the securitisation liability (disregarding subsection 705-70(4) );


(c) the joining entity transferred or equitably assigned one or more assets (the underlying securitised assets ) to another entity before the joining time;


(d) the securitisation liability:


(i) arose from the transfer or equitable assignment of the underlying securitised assets; and

(ii) is a liability of the joining entity at the joining time (according to the joining entity ' s *accounting principles for tax cost setting);


(e) the other entity was established for the purpose of securitising assets;


(f) the underlying securitised assets were securitised in accordance with that purpose before the joining time;


(g) at the joining time the *market value of the joining entity ' s interest in the underlying securitised assets is nil, or is substantially less than the amount of the securitisation liability.


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