Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 2   Consolidation etc.

Part 5   Partnership leaving consolidated group

Income Tax Assessment Act 1997

30   At the end of section 713-205


(4) The third object of this Subdivision is to ensure that, where a partnership ceases to be a *subsidiary member of a *consolidated group, the provisions mentioned in subsection (5) operate:

(a) as if the group's *partnership cost setting interests were the group's only assets relating to the partnership; and

(b) to set the *tax cost of those interests at an appropriate amount, taking into account the fact that the group ceases to be the holder of the assets of the partnership.

(5) The provisions are:

(a) sections 701-15 and 701-50 (about setting the tax cost of membership interests in an entity that leaves the group); and

(b) sections 701-20 and 701-45 (about the cost of assets consisting of certain liabilities owed by or to an entity that leaves the group); and

(c) Division 711.