Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This Subdivision applies if all of the * members of a * consolidated group (the acquired group ) become members of another consolidated group (the acquiring group ) at a particular time (the acquisition time ) as a result of the * acquisition of * membership interests in the * head company of the acquired group.
(2) The object of this Subdivision is:
(a) to modify the rules in Division 701 (the core rules) to complement the treatment of the acquired group as a single entity that applied before the acquisition time; and
(b) to modify Subdivision 705 - A (which basically
determines the tax cost setting amount for assets of an entity joining a
consolidated group) to ensure that the * tax cost setting amount for assets of
the acquired group that become those of the acquiring group reflects the cost
to the latter group of acquiring the former.