Taxation Determination

TD 2004/61W

Income tax: consolidation tax cost setting rules: step 3 of the allocable cost amount: should tax losses or net capital losses transferred to a joining entity be taken into account when determining whether an amount should be excluded at paragraph 705-90(6)(b) of the Income Tax Assessment Act 1997?

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FOI status:

Notice of Withdrawal

Taxation Determination TD 2004/61 is withdrawn with effect from 1 July 2002.

1. Taxation Determination TD 2004/61 provided that losses transferred to a joining entity by another member of a wholly-owned group prior to the joining time did not have to be taken into account under paragraph 705-90(6)(b) of the Income Tax Assessment Act 1997.

2. TD 2004/61 is withdrawn as a result of the repeal of paragraph 705-90(6)(b) by Tax Laws Amendment (2004 Measures No. 7) Act 2005 (41 of 2005).

Commissioner of Taxation
16 August 2006

Previously issued as Draft TD 2004/D38

References

ATO references:
NO 2004/9764

Related Rulings/Determinations:

TR 92/20

Subject References:
ACA
allocable cost amount
consolidation
cost base
cost setting
deferred tax assets
income company
loss company
losses
market value
profits
recouped losses
reduced cost base
retained profits
step 1
step 2
step 3
tax losses
undistributed profits
untaxed profits
wholly-owned group
wholly-owned subsidiary

Legislative References:
TAA 1953 Pt IVAAA
ITAA 1997 Subdiv 170-C
ITAA 1997 170-215(4)
ITAA 1997 705-65(1)
ITAA 1997 705-65(3)
ITAA 1997 705-75(3)
ITAA 1997 705-90
ITAA 1997 705-90(2)
ITAA 1997 705-90(3)
ITAA 1997 705-90(6)(a)
ITAA 1997 705-90(6)(b)

Other References:
Explanatory Memorandum to the New Business Tax System (Consolidation) Bill (No. 1) 2002