Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 713.260

Partnership leaves group--tax cost setting amount for assets consisting of being owed certain liabilities

  (1)   This section applies if:

  (a)   when the partnership ceases to be a * subsidiary member of the group, a partner remains a * member of the group; and

  (b)   an asset becomes an asset of the * head company because subsection   701 - 1(1) (the single entity rule) ceases to apply to the partnership when it ceases to be a subsidiary member; and

  (c)   the asset is, ignoring that subsection:

  (i)   the partner's interest in an asset of the partnership consisting of a liability of a member of the group owed to the partnership; or

  (ii)   the partner's share of a liability of the partnership owed to a member of the group.

  (2)   The asset's * tax cost is set at the leaving time at a * tax cost setting amount equal to the * market value of the asset.


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