Income Tax Assessment Act 1997



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

Subdivision 715-A - Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation  

Effect on Subdivision 165-CC of entity leaving consolidated group

SECTION 715-95   If ownership and control of leaving entity have not changed since head company ' s last changeover time  

This section applies if:

(a) the leaving entity is a company; and

(b) the leaving time is not a * changeover time for the leaving entity; and

(c) just before the leaving time, the * head company owned at least one * CGT asset:

(i) that was a * 165-CC tagged asset just before the leaving time; and

(ii) that it owned at the latest changeover time for the head company at or after the group came into existence and before the leaving time; and

(d) at least one asset covered by paragraph (c) is an asset (a leaving asset ) that becomes an asset of the leaving entity at the leaving time because subsection 701-1(1) (Single entity rule) ceases to apply to the entity; and

(e) the head company ' s * final RUNL at the leaving time is greater than nil.

This section also applies if the leaving entity is a trust.


If the * head company does not satisfy the *business continuity test for:

(a) the period (the business continuity test period ) starting at the earlier of:

(i) the time 12 months before the leaving time; and

(ii) when the head company came into existence;
and ending just before the leaving time; and

(b) the time (the test time ) just before the * changeover time;

the head company must make one of the choices for which sections 715-100 , 715-105 and 715-110 provide.


For provisions about making one of these choices, see sections 715-175 to 715-185 .

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