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-B - Case of group formation  

Application and object

SECTION 705-135   Application and object of this Subdivision  

Application

705-135(1)  
This Subdivision has effect for the head company core purposes set out in subsection 701-1(2) if one or more entities become * subsidiary members of a * consolidated group at the time (the formation time ) it comes into existence as a consolidated group.

Note:

This is the first exception to Subdivision 705-A : see paragraph 705-15(a) .

Object

705-135(2)  
The object of this Subdivision is to modify the rules in Subdivision 705-A (which basically determine the tax cost setting amount for assets of an entity joining an existing * consolidated group) so that they have effect, and take account of different circumstances that apply, when a consolidated group comes into existence.

Note:

The main circumstance is where one of the entities has membership interests in another. In such a case, the order in which the rules in Subdivision 705-A are applied will affect the tax cost setting amounts for the assets of the entities.


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