INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 703 - Consolidated groups and their members  

Effects of choice to continue group after shelf company becomes new head company  

SECTION 703-80   703-80   Effects on the original entity ' s tax position  


In applying section 701-30 to the original entity for the income year that includes the completion time, disregard a non-membership period that starts before the completion time.
Note 1:

Section 701-30 is about working out an entity ' s tax position for a period when it is not a subsidiary member of any consolidated group. Its application can also affect the entity's tax position in later income years.

Note 2:

Under section 703-75 the interposed company inherits the original entity ' s tax position for the part of the income year that ends before the completion time, with the consequence that the original entity ' s taxable income, income tax payable, and losses of any sort, for that part are each nil.

Because of section 703-75 and this section, the only tax payable by the original entity for the income year arises because of the application of section 701-30 to non-membership periods in the income year after the completion time.


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