INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 707 - Losses for head companies when entities become members, etc  

Subdivision 707-A - Transfer of losses to head company  

SECTION 707-145   707-145   Certain choices to cancel the transfer of a loss may be revoked  
Subsection 707-145(3) of the Income Tax Assessment Act 1997 does not apply if:


(a) the revocation of the choice mentioned in that subsection takes place before 1 January 2006; and


(b) each entity in relation to which the following conditions are satisfied has agreed to the revocation:


(i) the entity (the leaving entity ) ceased to be a subsidiary member of the group before the revocation took place;

(ii) an asset became that of the leaving entity because section 701-1 (the single entity rule) of the Income Tax Assessment Act 1997 ceased to apply when the leaving entity ceased to be a subsidiary member;

(iii) the asset had become that of the head company because that section applied when the joining entity to which Subdivision 707-A of that Act applies (whether or not the same entity as the leaving entity) became a subsidiary member.



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