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 715-379A   Cost setting on leaving - head company ' s or leaving entity ' s right to receive or obligation to provide payment  

715-379A(1)  
This 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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