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-F
-
Interactions with Division 230 (financial arrangements)
SECTION 715-375
Cost setting on joining
-
amount of liability that is Division 230 financial arrangement
715-375(1)
Subsection (2) applies if:
(a) an entity (the joining entity ) becomes a *subsidiary member of a *consolidated group at a time (the joining time ); and
(b) a thing (the accounting liability ) is, in accordance with *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board, a liability of the joining entity at the joining time (disregarding subsection 701-1(1) (the single entity rule)) that can or must be recognised in the entity ' s statement of financial position; and
(c) the accounting liability is or is part of a *Division 230 financial arrangement of the head company at the joining time (because of subsection 701-1(1) (the single entity rule)).
715-375(2)
For the purposes of Division 230 and Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 , treat the * head company of the group as starting to have the accounting liability at the joining time for receiving a payment equal to:
(a) if the liability is or is part of a * Division 230 financial arrangement of the head company at the joining time (because of subsection 701-1(1) (the single entity rule)):
(b) otherwise - the liability ' s * Division 230 starting value at the joining time.
715-375(3)
(Repealed by No 99 of 2012)
715-375(4)
(Repealed by No 99 of 2012)
View history note
Hide history noteSubsection (2) applies if:
(a) an entity (the joining entity ) becomes a *subsidiary member of a *consolidated group at a time (the joining time ); and
(b) a thing (the accounting liability ) is, in accordance with *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board, a liability of the joining entity at the joining time (disregarding subsection 701-1(1) (the single entity rule)) that can or must be recognised in the entity ' s statement of financial position; and
(c) the accounting liability is or is part of a *Division 230 financial arrangement of the head company at the joining time (because of subsection 701-1(1) (the single entity rule)).
For the purposes of Division 230 and Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 , treat the * head company of the group as starting to have the accounting liability at the joining time for receiving a payment equal to:
(a) if the liability is or is part of a * Division 230 financial arrangement of the head company at the joining time (because of subsection 701-1(1) (the single entity rule)):
(i) to which Subdivision 230-B (accruals method or realisation method) applies; or
the amount of the liability, as determined in accordance with:
(ii) to which Subdivision 230-E (hedging financial arrangements method) applies;
(iii) the joining entity ' s * accounting principles for tax cost setting; or
(iv) if the amount of the liability cannot be determined in accordance with the joining entity ' s accounting principles for tax cost setting - comparable standards for accounting made under a * foreign law; or
(b) otherwise - the liability ' s * Division 230 starting value at the joining time.
(Repealed by No 99 of 2012)
(Repealed by No 99 of 2012)
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.