INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 701A - Modified application of provisions of Income Tax Assessment Act 1997 for entities with continuing majority ownership from 27 June 2002 until joining a consolidated group  

SECTION 701A-7   Modified application of Part 3-90 of Income Tax Assessment Act 1997 to registered emissions units of continuing majority-owned entity  

701A-7(1)  
The operation of Part 3-90 of the Income Tax Assessment Act 1997 is modified in accordance with this section in relation to each asset of a continuing majority-owned entity that is a registered emissions unit just before the entity becomes a subsidiary member of the entity ' s designated group. Continuing majority-owned entity to revalue its registered emissions units under normal provisions

701A-7(2)  
For the entity core purposes:


(a) subsection 701-35(5) of the Income Tax Assessment Act 1997 does not apply in relation to the asset; and


(b) instead, the value of the asset at the end of the income year that ends, or, if section 701-30 of that Act applies, of the income year that is taken by subsection (3) of that section to end, is the value determined in accordance with sections 420-51 to 420-58 of that Act. For head company, registered emissions units to be retained cost base asset with tax cost setting amount equal to entity ' s year-end valuation

701A-7(3)  
For the head company core purposes when the continuing majority-owned entity becomes a subsidiary member of the designated group, the asset is a retained cost base asset whose tax cost setting amount is equal to the value applicable in accordance with paragraph (2)(b).




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.