Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.15

Object of this Subdivision

             (1)  The object of this Subdivision is to give effect to the purposes of Subdivision 165-CC (about change of ownership or control of a company that has an unrealised net loss) in these cases:

                     (a)  on formation of a * consolidated group, a * CGT asset held directly by the * head company is affected by that Subdivision, and the * business continuity test is failed;

                     (b)  on an entity becoming a * subsidiary member of a consolidated group, an asset consisting of:

                              (i)  a * membership interest that a * member of the group (including a chosen transitional entity under Division 701 of the Income Tax (Transitional Provisions) Act 1997 ) holds in the entity; or

                             (ii)  a liability that the entity owes to such a member;

                            is affected by that Subdivision, and the business continuity test is failed;

                     (c)  on a company becoming a subsidiary member:

                              (i)  a CGT asset of the company that becomes an asset of the head company is affected by that Subdivision; and

                             (ii)  because the company is a chosen transitional entity, the asset does not have its tax cost reset; and

                            (iii)  the business continuity test is failed;

                     (d)  on an entity ceasing to be a subsidiary member, a CGT asset of the head company that becomes an asset of the entity is affected by that Subdivision, and the business continuity test is failed.

Note:          Subdivision 165-CC also affects an entity that has deferred losses under Subdivision 170-D on assets that it formerly owned. Subdivision 715-D gives effect to the purposes of Subdivision 165-CC if such an entity becomes a member of a consolidated group.

             (2)  This Subdivision achieves its object by supplementing and modifying the application of Subdivision 165-CC to take account of how the rest of this Part treats * members of a * consolidated group (in particular the provisions about entities becoming or ceasing to be members).

Effect on Subdivision 165-CC of a company becoming a member of a consolidated group



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback