Commonwealth Consolidated Acts Commonwealth Consolidated ActsIn applying section 701 - 30 to the original entity for the income year that includes the completion time, disregard a non - membership period that starts before the completion time.
Note 1: Section 701 - 30 is about working out an entity's tax position for a period when it is not a subsidiary member of any consolidated group. Its application can also affect the entity's tax position in later income years.
Note 2: Under section 703 - 75 the interposed company inherits the original entity's tax position for the part of the income year that ends before the completion time, with the consequence that the original entity's taxable income, income tax payable, and losses of any sort, for that part are each nil.
Because of section 703 - 75 and this section, the only tax payable by the original entity for the income year arises because of the application of section 701 - 30 to non - membership periods in the income year after the completion time.