Commonwealth Consolidated Acts

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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 701A.7

Modified application of Part 3 - 90 of Income Tax Assessment Act 1997 to registered emissions units of continuing majority - owned entity

  (1)   The operation of Part   3 - 90 of the Income Tax Assessment Act 1997 is modified in accordance with this section in relation to each asset of a continuing majority - owned entity that is a registered emissions unit just before the entity becomes a subsidiary member of the entity's designated group.

Continuing majority - owned entity to revalue its registered emissions units under normal provisions

  (2)   For the entity core purposes:

  (a)   subsection   701 - 35(5) of the Income Tax Assessment Act 1997 does not apply in relation to the asset; and

  (b)   instead, the value of the asset at the end of the income year that ends, or, if section   701 - 30 of that Act applies, of the income year that is taken by subsection   (3) of that section to end, is the value determined in accordance with sections   420 - 51 to 420 - 58 of that Act.

For head company, registered emissions units to be retained cost base asset with tax cost setting amount equal to entity's year - end valuation

  (3)   For the head company core purposes when the continuing majority - owned entity becomes a subsidiary member of the designated group, the asset is a retained cost base asset whose tax cost setting amount is equal to the value applicable in accordance with paragraph   (2)(b).



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