New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 4   Consolidation: adjustments for errors etc.

Part 2   Consequential amendments

Taxation Administration Act 1953

9   At the end of section 284-80 in Schedule 1

Add:

(2) However, if:

(a) your shortfall amount arises in the situation covered by both item 1 in the table and item 1, 2 or 3 in the table in subsection 284-90(1); and

(b) the statement is false or misleading because of errors mentioned in section 705-315 of the Income Tax Assessment Act 1997 that were made in the income tax return mentioned in subsection 705-230(2) of that Act, your shortfall amount is instead the amount worked out using the formula:

where:

adjusted reset cost base asset setting amount means:

(a) the *tax cost setting amount, worked out under Division 705 of the Income Tax Assessment Act 1997, for all assets of a kind referred to in section 705-35 of that Act as reset cost base assets that the *head company of the relevant group held continuously from the time when the *subsidiary member referred to in subsection 705-315(2) of that Act joined the group until the start of the head company's income year in which the Commissioner became aware of the errors mentioned in section 705-315 of that Act;

less:

(b) the head company's deductions under Division 40 (except under Subdivision 40-F, 40-G, 40-H or 40-I) or Subdivision 328-D of the Income Tax Assessment Act 1997 for those assets for all income years before the income year in which the Commissioner became aware of the errors.

capital gain means the capital gain that the head company makes as a result of CGT event L6 happening as mentioned in section 104-525 of the Income Tax Assessment Act 1997.

original reset cost base asset setting amount means the *tax cost setting amount, worked out under Division 705 of the Income Tax Assessment Act 1997, for all reset cost base assets that the *subsidiary member held at the time it joined the group, other than assets that the *head company no longer held at the start of the earliest income year for which the Commissioner could amend the head company's assessment to correct any of the errors.