INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 705 - Tax cost setting amount for assets where entities become members of consolidated groups  

Subdivision 705-E - Expenditure relating to exploration, mining or quarrying  

SECTION 705-300   Application and object of this Subdivision  

705-300(1)  
If an entity (the joining entity ) to which section 40-75 of this Act applied becomes a subsidiary member of a consolidated group at a time (the joining time ), this Subdivision applies in relation to:


(a) depreciating assets that:


(i) caused section 40-75 of this Act to apply to the joining entity; and

(ii) became assets of the head company of the group at the joining time because of section 701-1 (Single entity rule) of the Income Tax Assessment Act 1997 operating in relation to the joining entity; and


(b) notional assets that sections 40-35 , 40-37 , 40-40 and 40-43 of this Act treat an entity as holding because of expenditure relating to such depreciating assets;

to affect the operation of Division 40 , section 701-55 and Division 705 of that Act.

705-300(2)  
The main object of this Subdivision is to ensure that entities are allowed only an appropriate amount of deductions in connection with such depreciating assets and such expenditure.


 

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