(1) The object of this Division is to allow an entity that is a potential subsidiary member of a consolidated group to utilise an overall foreign loss (as defined in former section 160AFD of the Income Tax Assessment Act 1936 ) during a transitional period, rather than have the head company utilise the loss subject to the restrictions in Subdivision 707-C of the Income Tax Assessment Act 1997 .
(2) Therefore, this Division allows the head company to prevent the entity from being a subsidiary member of the group, for a transitional period.
Table of sections
701D-10 Transitional foreign loss maker not member of group if certain conditions satisfied
701D-15 Choice to apply transitional rules to entity