Income Tax Assessment Act 1997

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 ).

Div 705 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 ).

Subdiv 705-A 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 ).

S 705-76 amended by No 14 of 2018, s 3 and Sch 1 item 16, by repealing para (a), effective 1 April 2018. See note under s 716-440 . No 14 of 2018, s 3 and Sch 1 item 18 contains the following application provision:

18 Application - joining case  
(1)
The amendment made by item 16 of this Schedule applies in relation to an entity that becomes a subsidiary member of a consolidated group or MEC group under an arrangement that commences after the 2016 budget time.

(2)
In this item:

2016 budget time
means 7.30 pm, by legal time in the Australian Capital Territory, on 3 May 2016.

Para (a) formerly read:

(a) at the joining time, a *member of the joined group is an *ADI or a *financial entity;

S 705-76 inserted by No 14 of 2018, s 3 and Sch 1 item 11, effective 1 April 2018. See note under s 716-440 . No 14 of 2018, s 3 and Sch 1 item 14 contains the following application provision:

14 Application - joining case  
(1)
The amendments made by items 10 and 11 of this Schedule apply in relation to an entity that becomes a subsidiary member of a consolidated group or MEC group under an arrangement that commences after the 2014 budget time.

(2)
Subject to subitems (3) and (6), the amendments made by items 10 and 11 of this Schedule also apply in relation to an entity (the joining entity ) that becomes a subsidiary member of a consolidated group or MEC group under an arrangement that commences on or before the 2014 budget time.

(3)
Subitem (2) does not apply if the Commissioner considers that it is reasonable to conclude that:

(a) the circumstances mentioned in section 705-76 of the Income Tax Assessment Act 1997 (as inserted by this Schedule) existed in respect of the joining entity; and

(b) before the 2014 budget time, the head company of the group:

(i) worked out the group ' s allocable cost amount for the joining entity; and

(ii) for the purposes of working out that allocable cost amount, worked out the step 2 amount mentioned in subsection 705-70(1) of that Act; and

(c) in working out that step 2 amount before the 2014 budget time, the head company added the amount mentioned in paragraph 705-76(b) of that Act (as inserted by this Schedule).

(4)
Subitem (5) applies if:

(a) subitem (2) does not apply because of subitem (3); and

(b) the Commissioner considers that it is reasonable to conclude that, before the 2014 budget time, the head company of the group worked out a tax cost setting amount for the joining entity ' s interest in the underlying securitised assets mentioned in paragraph 705-76(c) of the Income Tax Assessment Act 1997 (as inserted by this Schedule).

(5)
Reduce the group ' s allocable cost amount for the joining entity by the tax cost setting amount mentioned in paragraph (4)(b).

(6)
Subitem (2) does not apply if the Commissioner considers that it is reasonable to conclude that:

(a) the circumstances mentioned in section 705-76 of the Income Tax Assessment Act 1997 (as inserted by this Schedule) existed in respect of the joining entity; and

(b) the head company of the group first worked out the group ' s allocable cost amount for the joining entity:

(i) after the 2014 budget time; and

(ii) before the commencement of this item.

(7)
In this item:

2014 budget time
means 7.30 pm, by legal time in the Australian Capital Territory, on 13 May 2014.