CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-90
-
CONSOLIDATED GROUPS
History
Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
Division 715
-
Interactions between this Part and other areas of the income tax law
History
Div 715 inserted by No 16 of 2003 (see s
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
Subdivision 715-V
-
Entity ceasing to be exempt from income tax on becoming subsidiary member of consolidated group
History
Subdiv 715-V inserted by No 83 of 2004.
SECTION 715-900
Transition time taken to be just before joining time
715-900(1)
This section has effect if:
(a)
an entity becomes a
*
subsidiary member of a
*
consolidated group at a time (the
joining time
); and
(b)
the entity
'
s
*
ordinary income and
*
statutory income were not (to any extent) assessable income just before the joining time.
715-900(2)
Division
57
in Schedule
2D
to the
Income Tax Assessment Act 1936
and Division
58
of this Act have effect as if the entity
'
s
*
ordinary income or
*
statutory income had become to some extent assessable income just before the joining time.
Note 1:
Those Divisions deal with entities whose ordinary income and statutory income were previously exempt from income tax.
Note 2:
The operation of Division
58
just before the joining time can affect the basis on which the tax cost is set for a depreciating asset that becomes an asset of the head company of the consolidated group at the joining time because of section
701-1
(the single entity rule). That Division provides the basis for working out under Division
40
the asset
'
s adjustable value. This is the entity
'
s terminating value for the asset, which in turn can affect the tax cost setting amount for the asset under sections
705-40
,
705-45
and
705-47
.
History
S 715-900(2) amended by No 56 of 2010, s 3 and Sch 5 item 68, by substituting Note 2, applicable in relation to entities that become members of a consolidated group or MEC group on or after 1 July 2009. Note 2 formerly read:
Note 2:
The operation of Division 58 just before the joining time can affect the basis on which the tax cost is set for a depreciating asset that becomes an asset of the head company of the consolidated group at the joining time because of section 701-1 (the single entity rule). That Division provides the basis for working out under Division 40 the asset
'
s adjustable value, which:
(a) can affect the tax cost setting amount for the asset under section 705-50; and
(b) is the entity
'
s terminating value for the asset, which in turn can affect the tax cost setting amount for the asset under sections 705-40, 705-45, 705-47 and 705-50.
S 715-900 inserted by No 83 of 2004.
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