Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-A - Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation  

Effect of assets in loss denial pool of head company becoming assets of leaving entity

SECTION 715-120   What happens  

715-120(1)  
This section applies if:


(a) at a particular time (the leaving time ), an entity (the leaving entity ) ceases to be a * subsidiary member of a * consolidated group; and


(b) just before the leaving time, the * head company had a * loss denial pool; and


(c) at the leaving time, at least one * CGT asset (a leaving asset ) that was in the pool just before that time becomes a CGT asset of the leaving entity because subsection 701-1(1) (Single entity rule) ceases to apply to the entity.

715-120(2)  
Each leaving asset leaves the * loss denial pool at the leaving time.

715-120(3)  
If:


(a) the leaving entity is a company and the leaving time is not a * changeover time for the leaving entity; or


(b) the leaving entity is a trust;

the * head company must make one of the choices for which sections 715-125 , 715-130 and 715-135 provide.

For provisions about making one of these choices, see sections 715-175 to 715-185 .


 

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