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INCOME TAX ASSESSMENT ACT 1997 - SECT 705.320

Tax cost setting amounts taken to be correct

             (1)  For the purposes of this Act (other than this Subdivision) and for the purposes of the Taxation Administration Act 1953 , any * tax cost setting amounts that were worked out by the * head company, so far as they were due to the errors, are taken to have been correct if the conditions in section 705- 315 are satisfied.

Note 1:       If the conditions in section 705- 315 are satisfied, CGT event L6 happens (see section 104- 525).

Note 2:       Subsection (1) means that the Commissioner cannot amend any assessments necessary to correct the errors, and that (except as mentioned in subsection (2)) no offences or administrative penalties arise in respect of the errors.

             (2)  Subsection (1) does not apply for the purposes of determining whether there is an offence against section 8N of the Taxation Administration Act 1953 , or an administrative penalty under section 284-75 or 284-145 in Schedule 1 to that Act, in relation to statements made before the Commissioner became aware of the errors.

Note 1:       Section 8N of the Taxation Administration Act 1953 deals with false or misleading statements. Sections 284-75 and 284-145 in Schedule 1 to that Act set out the circumstances in which an entity is liable for an administrative penalty.

Note 2:       The offence and administrative penalty provisions however apply on a modified basis--see subsection 8W(1C) of the Taxation Administration Act 1953 , and subsections 284-80(2) and 284-150(2) in Schedule 1 to that Act.

Table of Subdivisions

707-A   Transfer of losses to head company

707-B    Can a transferred loss be utilised?

707-C    Amount of transferred losses that can be utilised

707-D   Special rules about losses

Guide to Subdivision 707-A



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