Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 701 - Core rules  

Common rule  

SECTION 701-1   Single entity rule  

701-1(1)  
If an entity is a * subsidiary member of a * consolidated group for any period, it and any other subsidiary member of the group are taken for the purposes covered by subsections (2) and (3) to be parts of the * head company of the group, rather than separate entities, during that period. Head company core purposes

701-1(2)  
The purposes covered by this subsection (the head company core purposes ) are:


(a) working out the amount of the * head company's liability (if any) for income tax calculated by reference to any income year in which any of the period occurs or any later income year; and


(b) working out the amount of the head company's loss (if any) of a particular * sort for any such income year.

Note:

The single entity rule would affect the head company's income tax liability calculated by reference to income years after the entity ceased to be a member of the group if, for example, assets that the entity held when it became a subsidiary member remained with the head company after the entity ceased to be a subsidiary member.

Entity core purposes

701-1(3)  
The purposes covered by this subsection (the entity core purposes ) are:


(a) working out the amount of the entity's liability (if any) for income tax calculated by reference to any income year in which any of the period occurs or any later income year; and


(b) working out the amount of the entity's loss (if any) of a particular * sort for any such income year.

Note:

An assessment of the entity's liability calculated by reference to income tax for a period when it was not a subsidiary member of the group may be made, and that tax recovered from it, even while it is a subsidiary member.

What is a sort of loss?

701-1(4)  
Each of these paragraphs identifies a sort of loss:


(a) * tax loss;


(b) * film loss;


(c) * net capital loss.


(d) (Repealed by No 143 of 2007 )


(e) (Repealed by No 143 of 2007 )


(f) (Repealed by No 143 of 2007 )


(g) (Repealed by No 143 of 2007 )

This subsection lists all the sorts of loss.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.