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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