Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 711 - Tax cost setting amount for membership interests where entities cease to be subsidiary members of consolidated groups  

Tax cost setting amount for membership interests etc.  

SECTION 711-30   What is the head company ' s terminating value for an asset?  

711-30(1)  
The ^* head company ' s terminating value for an asset that it holds at the leaving time because the leaving entity is taken by subsection 701-1(1) to be a part of the head company is worked out as follows.

711-30(2)  
The amount is worked out by applying section 705-30 in a corresponding way to the way that section applies to work out the ^* terminating value for an asset that a joining entity holds at the joining time.

711-30(3)  

However, that amount is the asset ' s ^* market value at the leaving time if:

(a) the asset is a right to receive lease payments under a lease; and

(b) the asset ' s ^* tax cost was set when an entity (whether the leaving entity or another entity) became a ^* subsidiary member of the old group; and

(c) the asset was taken to be a ^* retained cost base asset for the purposes of Division 705 when its tax cost was set, because of paragraph 705-56(3) (b).