Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 713 - Rules for particular kinds of entities  

Subdivision 713-E - Partnerships  

Special rules where partnership leaves consolidated group

SECTION 713-260   Partnership leaves group - tax cost setting amount for assets consisting of being owed certain liabilities  

713-260(1)    
This section applies if:

(a) when the partnership ceases to be a ^* subsidiary member of the group, a partner remains a ^* member of the group; and

(b) an asset becomes an asset of the ^* head company because subsection 701-1(1) (the single entity rule) ceases to apply to the partnership when it ceases to be a subsidiary member; and

(c) the asset is, ignoring that subsection:

(i) the partner's interest in an asset of the partnership consisting of a liability of a member of the group owed to the partnership; or

(ii) the partner's share of a liability of the partnership owed to a member of the group.

713-260(2)    
The asset's ^* tax cost is set at the leaving time at a ^* tax cost setting amount equal to the ^* market value of the asset.