Tax Laws Amendment (2010 Measures No. 1) Act 2010 (56 of 2010)
Schedule 5 Consolidation
Part 4 No double counting of amounts in ACA
Income Tax Assessment Act 1997
36 After section 705-60
Insert:
705-62 No double counting of amounts in allocable cost amount
(1) The object of this section is to prevent a particular amount from being taken into account more than once in calculating the *allocable cost amount for the joining entity, in order to promote the object of this Subdivision set out in section 705-10.
(2) Subsection (3) applies if, apart from this section, 2 or more provisions of this Act operate with the result of altering:
(a) the *allocable cost amount for the joining entity; or
(b) the allocable cost amount for another entity that becomes a *subsidiary member of the group at the joining time;
because of a particular economic attribute of the joining entity (see subsection (6)).
(3) Only one of those alterations is to be made, as follows:
(a) if the *head company of the group makes a choice in accordance with subsections (4) and (5) - the alteration specified in the choice is to be made;
(b) otherwise - the alteration that is most appropriate (in the light of the object of this Subdivision) is to be made.
(4) A choice mentioned in paragraph (3)(a) must be made:
(a) by the day the *head company of the group lodges its *income tax return for the income year in which the joining time occurs; or
(b) within a further time allowed by the Commissioner.
(5) A choice mentioned in paragraph (3)(a) must be made in writing.
(6) The economic attributes of the joining entity mentioned in subsection (2) include the following:
(a) the joining entity's retained profits;
(b) the joining entity's distributions of profits to other entities;
(c) the joining entity's realised and unrealised losses;
(d) the joining entity's deductions;
(e) the joining entity's accounting liabilities (within the meaning of subsection 705-70(1));
(f) consideration received by the joining entity for issuing *membership interests in itself.