Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Work out the step 2 amount for the purposes of the table in subsection 711 - 20(1) by multiplying all deductions covered by subsection (2) by the * corporate tax rate.
(2) This subsection covers any deduction to which the leaving entity becomes entitled under section 701 - 40 as a result of the leaving entity ceasing to be a * subsidiary member of the old group, other than a deduction for expenditure:
(a) that is, forms part of or reduces, the cost of an asset that becomes an asset of the leaving entity because subsection 701 - 1(1) (the single entity rule) ceases to apply; or
(b) to which section 110 - 40 (about expenditure on assets acquired before 7.30 pm on 13 May 1997) applies.
(3) Subsection (2) does not cover a deduction under
section 43 - 15 (which relates to *
undeducted construction expenditure) if, because of section 701 - 40
(the exit history rule), the leaving entity is taken to have * acquired the
asset to which the deduction relates at or before 7.30 pm, by legal time in
the Australian Capital Territory, on 13 May 1997.