Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 703 - Consolidated groups and their members  

Effects of choice to continue group after shelf company becomes new head company  

SECTION 703-70   Consolidated group continues in existence with interposed company as head company and original entity as a subsidiary member  

703-70(1)  


The * consolidated group is taken not to have ceased to exist under subsection 703-5(2) because the company referred to in subsection 615-30(2) as the original entity ceases to be the * head company of the group.

703-70(2)  


To avoid doubt, the interposed company is taken to have become the * head company of the * consolidated group at the completion time, and the original entity is taken to have ceased to be the head company at that time.
Note:

A further result is that the original entity is taken to have become a subsidiary member of the group at that time. Section 703-80 deals with the original entity ' s tax position for the income year that includes the completion time.

703-70(3)  
A provision of this Part that applies on an entity becoming a * subsidiary member of a * consolidated group does not apply to an entity being taken to have become such a member as a result of this section, unless the provision is expressed to apply despite this subsection.

Note:

An example of the effect of this subsection is that there is no resetting under section 701-10 of the tax cost of assets of the original entity that become assets of the interposed company because of subsection 701-1(1) (the single entity rule).

703-70(4)  
To avoid doubt, subsection (3) does not affect the application of subsection 701-1(1) (the single entity rule).


 

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