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INCOME TAX ASSESSMENT ACT 1997 - SECT 715.380

Exit history rule not to affect certain matters related to Division 230 financial arrangements

Spreading fees gain or loss

             (1)  Subsection (2) applies 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)  but for the cessation of membership and section 701-40 (the exit history rule), the * head company of the group would spread a fees gain or loss mentioned in section 230-160 over a period that ended after the leaving time.

             (2)  Despite section 701-40 (the exit history rule), the * head company of the * consolidated group continues to spread the fees gain or loss over that period, in accordance with section 230-160.

Assessable income and deductions under section 701- 61

             (3)  Subsection (4) applies 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)  but for the cessation of membership and section 701-40 (the exit history rule):

                              (i)  an amount would be included in the assessable income of the * head company of the group under section 701- 61 for an income year ending after the leaving time; or

                             (ii)  the head company of the group would be entitled to a deduction under section 701- 61 for an income year ending after the leaving time.

             (4)  Despite section 701-40 (the exit history rule), the amount is included in the assessable income of the * head company for the income year, or the head company is entitled to the deduction for the income year.



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