Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This Subdivision applies if an entity (the transitional foreign - held joining entity ) that is a transitional foreign - held subsidiary or a transitional foreign - held indirect subsidiary becomes a subsidiary member of a consolidated group at the time (the formation time ) the group comes into existence.
(2) The object of this Subdivision is to ensure that, on
becoming a subsidiary member at the formation time, the tax cost of the assets
of any transitional foreign - held subsidiary is not set and that the tax cost
setting amount for assets of any transitional foreign - held indirect
subsidiary that becomes a subsidiary member at that time takes account of
this.