Income Tax Assessment Act 1997
Hide history note
View history notePart 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).
Div 705 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).
Subdiv 705-C inserted by No 117 of 2002, s 3 and Sch 4 item 4, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).
SECTION 705-200 Modified application of section 705-85
Object
705-200(1)
The object of this section is to ensure that if any of the following are not held by * members of either group:
(a) certain employee share interests in * subsidiary members of the acquired group;
(b) certain * non-membership equity interests in subsidiary members of the acquired group;
(c) certain preference share interests in subsidiary members of the acquired group;
and are therefore part of the cost of acquiring the acquired group, they increase the acquiring group's * allocable cost amount for the acquired group.
S 705-200(1) amended by No 56 of 2010, s 3 and Sch 5 item 210, by substituting " * non-membership equity interests " for " rights or options to acquire * membership interests " in para (b). For application provision see note under s 705-65(6) .
S 705-200(1) amended by No 117 of 2007, s 3 and Sch 3 items 14 and 15, by substituting " any of the following " for " either of the following " and inserting para (c), applicable in relation to restructure instruments that come into force under the Financial Sector (Business Transfer and Group Restructure) Act 1999 on or after 1 July 2007.
Increase for certain membership interests in subsidiary members of acquired group
705-200(2)
Subsections 705-85(1) , (2) and (4) have effect as if a * membership interest in a * subsidiary member of the acquired group were a membership interest in the * head company of that group.
S 705-200(2) amended by No 117 of 2007, s 3 and Sch 3 item 16, by substituting " , (2) and (4) " for " and (2) " , applicable in relation to restructure instruments that come into force under the Financial Sector (Business Transfer and Group Restructure) Act 1999 on or after 1 July 2007.
Non-membership equity interests
705-200(3)
Paragraph 705-85(3)(a) has effect as if it also increased the step 2 amount worked out under section 705-70 by the amount that would be the sum of the balances of the * non-share capital accounts of the * subsidiary members of the acquired group, assuming that:
(a) for a subsidiary member that is not a company - the subsidiary member were a company; and
(b) each * non-membership equity interest (if any) in a subsidiary member held at the acquisition time by a person other than a * member of the acquiring group or acquired group were a * non-share equity interest in the subsidiary member; and
(c) the non-share equity interests (if any) mentioned in paragraph (b) were the only non-share equity interests in the subsidiary member.
S 705-200(3) substituted by No 56 of 2010, s 3 and Sch 5 item 211. For application provision see note under s 705-65(6) .
S 705-200(3) formerly read:
Increase for certain rights and options to acquire membership interests in subsidiary members of acquired group
705-200(3)
Paragraph 705-85(3)(a) has effect as if it also increased the step 2 amount worked out under section 705-70 by the * market value of any right or option (including a contingent right or option), created or issued by a * subsidiary member the acquired group, to acquire a * membership interest in the subsidiary member, where that right or option was held at the acquisition time by a person other than a * member of the acquiring group or acquired group.
S 705-200 inserted by No 117 of 2002, s 3 and Sch 4 item 4, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).
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.
