Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-B - How Subdivision 165-CD applies to consolidated groups and leaving entities  

How Subdivision 165-CD applies to leaving entity that is a company

SECTION 715-250   If head company has had an alteration time but ownership and control of leaving entity have not altered since  

715-250(1)  
This section applies if:


(a) 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; and


(b) the leaving time is not an * alteration time for the leaving entity under subsection 715-245(2) .

715-250(2)  
The leaving time is an alteration time for the leaving entity.

715-250(3)  
However, for the purposes of determining when the leaving entity's next * alteration time happens, the reference time under subsection 165-115L(2) or 165-115M(2) is the time just after the most recent alteration time for the * head company before the leaving time.

715-250(4)  
The leaving entity is a loss company at the leaving time if, and only if, the * head company would have had an * adjusted unrealised loss at the most recent * alteration time (the head company alteration time ) for the head company before the leaving time if that adjusted unrealised loss (if any) were worked out on the basis that:


(a) the head company chooses whether the * individual asset method or the * global method is used; and


(b) a * CGT asset is taken into account only if:


(i) the head company owned it at the head company alteration time; and

(ii) it becomes a CGT asset of the leaving entity at the leaving time because subsection 701-1(1) (the single entity rule) ceases to apply to the entity; and


(c) if the individual asset method is used, then for the purposes of:


(i) step 1 of the method statement in subsection 165-115U(1) ; and

(ii) the method statement in subsection 165-115W(1) ;
the head company had no earlier alteration time.

715-250(5)  
If the leaving entity is a * loss company at the leaving time, its overall loss at that time is the * adjusted unrealised loss worked out under subsection (4).


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