Income Tax Assessment Act 1997



Division 705 - Tax cost setting amount for assets where entities become subsidiary members of consolidated groups  

Subdivision 705-A - Basic case: a single entity joining an existing consolidated group  

How to work out the allocable cost amount

SECTION 705-105   705-105   Continuity of holding membership interests - steps 3 to 5 in working out allocable cost amount  


(a) a * membership interest that a * member of the joined group held in the joining entity at the joining time was taken under this Act to have been * acquired by the member for its * market value at a particular time (the market value time ); or

(b) the * cost base and * reduced cost base of a membership interest that a member of the joined group held in the joining entity at the joining time were, before that time, changed on one or more occasions by this Act so that they equalled the market value of the membership interest at a particular time (the last of which times is also the market value time );

then, for the purpose of sections 705-90 , 705-95 , 705-100 and 713-25 , the * head company is taken not to have held that membership interest, either directly or indirectly, before the market value time.


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