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-F - Interactions with Division 230 (financial arrangements)  

SECTION 715-378   Cost setting on joining - head company ' s right to receive or obligation to provide payment  

715-378(1)  
This section applies in relation to an asset or a liability if:


(a) an entity (the joining entity ) becomes a subsidiary member of a consolidated group at a time (the joining time ); and


(b) the asset or liability becomes that of the head company of the group because subsection 701-1(1) (the single entity rule) applies at the joining time; and


(c) in the case of an asset - subsection 701-55(5A) applies in relation to the asset at the joining time; and


(d) in the case of a liability - subsection 715-375(2) applies in relation to the liability at the joining time.

715-378(2)  
In the case of an asset, for the purposes of section 230-60 , assume that the * head company of the group acquired the asset at the joining time (as mentioned in subsection 701-55(5A) ) in return for the head company starting to have an obligation to provide the payment mentioned in that subsection.

715-378(3)  
In the case of a liability, for the purposes of section 230-60 , assume that the * head company of the group started to have the liability at the joining time (as mentioned in subsection 715-375(2) ) in return for the head company starting to have a right to receive the payment mentioned in that subsection.


 

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