Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.379A

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

  (a)   an entity (the leaving entity ) ceases to be a * subsidiary member of a * consolidated group at a time (the leaving time ); and

  (b)   because subsection   701 - 1(1) (the single entity rule) ceases to apply to the leaving entity at the leaving time, the asset or liability becomes the asset or liability of:

  (i)   the leaving entity; or

  (ii)   the * head company of the group; and

  (c)   if subparagraph   (b)(i) applies:

  (i)   in the case of an asset--subsection   701 - 55(5A) applies in relation to the asset at the leaving time because of section   701 - 45; or

  (ii)   in the case of a liability--subsection   715 - 379(2) applies in relation to the liability at the leaving time; and

  (d)   if subparagraph   (b)(ii) applies:

  (i)   in the case of an asset--subsection   701 - 55(5A) applies in relation to the asset at the leaving time because of section   701 - 20; and

  (ii)   in the case of a liability--subsection   715 - 379(2) applies in relation to the liability at the leaving time; and

  (e)   the asset or liability is or is part of a * Division   230 financial arrangement.

  (2)   If subparagraph   (1)(b)(i) applies:

  (a)   in the case of an asset--for the purposes of section   230 - 60, assume that the leaving entity acquired the asset (as mentioned in subsection   701 - 55(5A)) at the leaving time in return for the leaving entity starting to have an obligation to provide the payment mentioned in that subsection; and

  (b)   in the case of a liability--for the purposes of section   230 - 60, assume that the leaving entity started to have the liability at the leaving time in return for the leaving entity starting to have a right to receive the payment mentioned in subsection   715 - 379(2).

  (3)   If subparagraph   (1)(b)(ii) applies:

  (a)   in the case of an asset--for the purposes of section   230 - 60, assume that the head company acquired the asset (as mentioned in subsection   701 - 55(5A)) at the leaving time in return for the head company starting to have an obligation to provide the payment mentioned in that subsection; and

  (b)   in the case of a liability--for the purposes of section   230 - 60, assume that the head company started to have the liability at the leaving time in return for the head company starting to have a right to receive the payment mentioned in subsection   715 - 379(2).