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  

Choices under this Subdivision

SECTION 715-185   Leaving entity may choose to cancel loss denial pool by reducing adjustable values of assets in the pool  

715-185(1)  
Within 6 months after a * loss denial pool is created under section 715-110 or 715-135 , or within a further period allowed by the Commissioner, the leaving entity may choose to be treated as if the * head company had instead made:


(a) the first choice under section 715-100 or 715-125 ; or


(b) the second choice under section 715-105 or 715-130 ;

as specified by the leaving entity in its choice.

715-185(2)  
If the leaving entity makes a choice under subsection (1):


(a) the * loss denial pool ceases to exist just after the leaving time; and


(b) at the leaving time, the * adjustable value of each * CGT asset in the pool is reduced to what it would have been at that time if the head company had instead made the choice specified by the leaving entity in its choice.

715-185(3)  
The choice by the leaving entity does not affect how subsection 715-135(4) applies to the * head company.

Note:

This means that the head company's loss denial pool still ceases to exist.


 

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