Treasury Laws Amendment (Income Tax Consolidation Integrity) Act 2018 (14 of 2018)

Schedule 1   Consolidation

Part 3   Securitised assets: 2014 Budget

Income Tax Assessment Act 1997

15   Application - leaving case

(1) The amendments made by items 12 and 13 of this Schedule apply in relation to an entity that ceases to be a subsidiary member of a consolidated group or MEC group under an arrangement that commences (see Part 8 of this Schedule) after the 2014 budget time.

(2) Subject to subitem (3), the amendments made by items 12 and 13 of this Schedule also apply in relation to an entity (the leaving entity ) that ceases to be a subsidiary member of a consolidated group or MEC group under an arrangement that commences (see Part 8 of this Schedule) on or before the 2014 budget time.

(3) Subitem (2) does not apply if the Commissioner considers that it is reasonable to concludethat:

(a) the circumstances mentioned in section 711-46 of the Income Tax Assessment Act 1997 (as inserted by this Schedule) existed in respect of the leaving entity; and

(b) before the 2014 budget time, the head company of the group (the old group ):

(i)worked out the old group's allocable cost amount for the leaving entity; and

(ii) for the purposes of working out that allocable cost amount, worked out the step 4 amount mentioned in subsection 711-45(1) of that Act; and

(c) in working out that step 4 amount before the 2014 budget time, the head company added the amount mentioned in paragraph 711-46(b) of that Act (as inserted by this Schedule).

(4) Subitem (5) applies if:

(a) subitem (2) does not apply because of subitem (3); and

(b) the Commissioner considers that it is reasonable to concludethat, in working out that allocable cost amount before the 2014 budget time, the head company of the old group included in the step 1 amount mentioned in subsection 711-25(1) of the Income Tax Assessment Act 1997 an amount (the addition to step 1 ) in respect of the leaving entity's interest in the underlying securitised assets mentioned in paragraph 711-46(c) of that Act (as inserted by this Schedule).

(5) Increase the old group's allocable cost amount for the leaving entity by the addition to step 1.

(6) In this item:

2014 budget time means 7.30 pm, by legal time in the Australian Capital Territory, on 13 May 2014.