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INCOME TAX ASSESSMENT ACT 1997 - SECT 715.378

Cost setting on joining--head company's right to receive or obligation to provide payment

             (1)  This section applies in relation to an asset or a liability if:

                     (a)  an entity (the joining entity ) becomes a subsidiary member of a consolidated group at a time (the joining time ); and

                     (b)  the asset or liability becomes that of the head company of the group because subsection 701-1(1) (the single entity rule) applies at the joining time; and

                     (c)  in the case of an asset--subsection 701-55(5A) applies in relation to the asset at the joining time; and

                     (d)  in the case of a liability--subsection 715-375(2) applies in relation to the liability at the joining time.

             (2)  In the case of an asset, for the purposes of section 230-60, assume that the * head company of the group acquired the asset at the joining time (as mentioned in subsection 701-55(5A)) in return for the head company starting to have an obligation to provide the payment mentioned in that subsection.

             (3)  In the case of a liability, for the purposes of section 230-60, assume that the * head company of the group started to have the liability at the joining time (as mentioned in subsection 715-375(2)) in return for the head company starting to have a right to receive the payment mentioned in that subsection.



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