Income Tax Assessment Act 1997
This section applies if the leaving time would be an * alteration time for the leaving entity if:
(a) the reference time under subsection 165-115L(2) or 165-115M(2) were:
(i) if at least one alteration time has occurred in relation to the * head company of the * consolidated group since the formation time and before the leaving time - the time just after the most recent such alteration time; or
(ii) otherwise - the formation time; and
(b) the additional assumptions in section 715-290 were made. 715-245(2)
The leaving time is an alteration time for the leaving entity.
One consequence of this is that the reference time for working out the leaving entity's next alteration time is the time just after the leaving time.715-245(3)
The leaving entity is a loss company at that * alteration time if, and only if, it has an * adjusted unrealised loss at that time. If so, that adjusted unrealised loss is the leaving entity's overall loss at that time.
Subsection (4) affects how the leaving entity works out its adjusted unrealised loss at the leaving time in some cases.
If the leaving entity is a loss company at the leaving time, section 715-255 provides for the consequences.715-245(4)
If the leaving entity uses the * individual asset method of working out its * adjusted unrealised loss at that * alteration time, then for the purposes of:
(a) step 1 of the method statement in subsection 165-115U(1) ; and
(b) the method statement in subsection 165-115W(1) ;
the leaving entity is taken to have had no earlier alteration time.