INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 705 - Tax cost setting amount for assets where entities become subsidiary members of consolidated groups  

Subdivision 705-A - Basic case: a single entity joining an existing consolidated group  

How to work out the allocable cost amount

SECTION 705-100   Losses accruing to joined group before joining time - step 5 in working out allocable cost amount  

705-100(1)  
For the purposes of step 5 in the table in section 705-60 , the step 5 amount is the sum of all losses of any * sort of the joining entity that:


(a) had not been * utilised by the joining entity for the income year in which the joining time occurred or any earlier income year; and


(b) accrued to the joined group before the joining time (see subsection 705-90(8) ).

705-100(2)  


However, a loss is not to be taken into account under subsection (1) to the extent that it reduced the undistributed profits comprising the step 3 amount in the table in section 705-60 .

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