Income Tax Assessment Act 1997
Subsection 701-1(1) (Single entity rule) and section 701-5 (Entry history rule) also have effect for all the purposes of Part 3-95 (Value shifting).
One consequence of this for the operation of Division 727 (about indirect value shifting affecting interests in companies and trusts, and arising from non-arm ' s length dealings) is that economic benefits provided by or to a subsidiary member of a consolidated group are treated as provided by or to the head company of the group. As a result:
Another consequence is that the head company is treated as owning all interests owned by group members in a losing entity or gaining entity that is not a group member.715-410(2)
This section is not intended to limit the effect that subsection 701-1(1) and section 701-5 have apart from this section.