Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 705.135

Application and object of this Subdivision

Application

  (1)   This Subdivision has effect for the head company core purposes set out in subsection   701 - 1(2) if one or more entities become * subsidiary members of a * consolidated group at the time (the formation time ) it comes into existence as a consolidated group.

Note:   This is the first exception to Subdivision   705 - A: see paragraph   705 - 15(a).

Object

  (2)   The object of this Subdivision is to modify the rules in Subdivision   705 - A (which basically determine the tax cost setting amount for assets of an entity joining an existing * consolidated group) so that they have effect, and take account of different circumstances that apply, when a consolidated group comes into existence.

Note:   The main circumstance is where one of the entities has membership interests in another. In such a case, the order in which the rules in Subdivision   705 - A are applied will affect the tax cost setting amounts for the assets of the entities.


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