Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-90
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CONSOLIDATED GROUPS
Division 713
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Rules for particular kinds of entities
Subdivision 713-E
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Partnerships
Special rules where partnership leaves consolidated group
SECTION 713-265 Partnership leaves group - adjustments to allocable cost amount of partner who also leaves group 713-265(1)
This section has effect in working out the group ' s * allocable cost amount for a partner in the partnership, if the partner ceases to be a * subsidiary member of the group at the leaving time.
713-265(2)
Section 711-35 operates as if:
(a) a deduction to which the partnership becomes entitled (the partnership deduction ) were a deduction to which the partner becomes entitled, to the extent of the partner ' s individual share of the partnership deduction; and
(b) the deduction to which the partner becomes entitled were of the same kind as the partnership deduction.
713-265(3)
Section 711-40 operates as if a liability owed by * members of the group to the partnership at the leaving time were a liability owed by members of the group to the partner at that time, to the extent of the partner ' s individual share of the liability.
713-265(4)
If:
(a) in accordance with the *accounting principles that the partnership would use if it were to prepare its financial statements just before the leaving time (disregarding subsection 701-1(1) (the single entity rule)), a thing (the partnership liability ) is a liability of the partnership just before the leaving time; and
(b) for that reason, the partnership liability is not an accounting liability of the partner just before the leaving time for the purposes of section 711-45 ;
View history note
Hide history noteSECTION 713-265 Partnership leaves group - adjustments to allocable cost amount of partner who also leaves group 713-265(1)
This section has effect in working out the group ' s * allocable cost amount for a partner in the partnership, if the partner ceases to be a * subsidiary member of the group at the leaving time.
713-265(2)
Section 711-35 operates as if:
(a) a deduction to which the partnership becomes entitled (the partnership deduction ) were a deduction to which the partner becomes entitled, to the extent of the partner ' s individual share of the partnership deduction; and
(b) the deduction to which the partner becomes entitled were of the same kind as the partnership deduction.
Note:
These kinds of deductions include acquired deductions and owned deductions (within the meaning of section 711-35 ).
713-265(3)
Section 711-40 operates as if a liability owed by * members of the group to the partnership at the leaving time were a liability owed by members of the group to the partner at that time, to the extent of the partner ' s individual share of the liability.
713-265(4)
If:
(a) in accordance with the *accounting principles that the partnership would use if it were to prepare its financial statements just before the leaving time (disregarding subsection 701-1(1) (the single entity rule)), a thing (the partnership liability ) is a liability of the partnership just before the leaving time; and
(b) for that reason, the partnership liability is not an accounting liability of the partner just before the leaving time for the purposes of section 711-45 ;
then section 711-45 operates as if the partnership liability were an accounting liability of the partner just before the leaving time, to the extent of the partner ' s individual share of the partnership liability.
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