Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-J - MEC group cost setting rules: leaving cases  

SECTION 719-510   Modified operation of paragraphs 711-15(1)(b) and (c)  

719-510(1)    
This section applies if the leaving entity mentioned in subsection 711-15(1) is a ^* subsidiary member of the old group that is an ^* eligible tier-1 company.

719-510(2)    
Paragraphs 711-15(1)(b) and (c) apply as if the membership interests mentioned in those paragraphs included ^* pooled interests in the ^* eligible tier-1 company.

Note:

This subsection means that, in working out tax cost setting amounts for internal interests in the eligible tier-1 company, section 711-15 will allocate part of the old group's allocable cost amount for the eligible tier-1 company to the pooled interests in the company. However, the tax cost of the pooled interests is not set according to section 711-15 . Subdivision 719-K contains rules that set the cost of the pooled interests.