Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-90
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CONSOLIDATED GROUPS
Division 715
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Interactions between this Part and other areas of the income tax law
Subdivision 715-F
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Interactions with Division 230 (financial arrangements)
SECTION 715-375
Cost setting on joining
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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(Repealed by No 99 of 2012)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(Repealed by No 99 of 2012)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)
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