Income Tax Assessment Act 1997
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Hide history noteThis section applies in relation to an asset or a liability if:
(a) an entity (the leaving entity ) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time ); and
(b) because subsection 701-1(1) (the single entity rule) ceases to apply to the leaving entity at the leaving time, the asset or liability becomes the asset or liability of:
(i) the leaving entity; or
(ii) the *head company of the group; and
(c) if subparagraph (b)(i) applies:
(i) in the case of an asset - subsection 701-55(5A) applies in relation to the asset at the leaving time because of section 701-45 ; or
(ii) in the case of a liability - subsection 715-379(2) applies in relation to the liability at the leaving time; and
(d) if subparagraph (b)(ii) applies:
(i) in the case of an asset - subsection 701-55(5A) applies in relation to the asset at the leaving time because of section 701-20 ; and
(ii) in the case of a liability - subsection 715-379(2) applies in relation to the liability at the leaving time; and
(e) the asset or liability is or is part of a *Division 230 financial arrangement.
715-379A(2)
If subparagraph (1)(b)(i) applies:
(a) in the case of an asset - for the purposes of section 230-60 , assume that the leaving entity acquired the asset (as mentioned in subsection 701-55(5A) ) at the leaving time in return for the leaving entity starting to have an obligation to provide the payment mentioned in that subsection; and
(b) in the case of a liability - for the purposes of section 230-60 , assume that the leaving entity started to have the liability at the leaving time in return for the leaving entity starting to have a right to receive the payment mentioned in subsection 715-379(2) .
715-379A(3)
If subparagraph (1)(b)(ii) applies:
(a) in the case of an asset - for the purposes of section 230-60 , assume that the head company acquired the asset (as mentioned in subsection 701-55(5A) ) at the leaving time in return for the head company starting to have an obligation to provide the payment mentioned in that subsection; and
(b) in the case of a liability - for the purposes of section 230-60 , assume that the head company started to have the liability at the leaving time in return for the head company starting to have a right to receive the payment mentioned in subsection 715-379(2) .
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