(1) This section reduces the adjustable value of a notional asset that section 40-35, 40-37, 40-38, 40-40 or 40-43 treats the head company of a consolidated group as holding, if:
(a) an entity (the leaving entity ) ceases to be a subsidiary member of the group at a time (the leaving time ); and
(b) that section treats the leaving entity as holding a notional asset because of section 701-40 (Exit history rule) of the Income Tax Assessment Act 1997 .
Note: Section 701-40 (Exit history rule) of the Income Tax Assessment Act 1997 treats as expenditure of the leaving entity certain expenditure incurred before the leaving time in relation to an asset or business that was an asset or business of the leaving entity at the leaving time.
(2) The adjustable value of the head company's notional asset is reduced at the leaving time by the adjustable value of the leaving entity's notional asset at that time.
Table of Subdivisions
713-L Transitional relief for certain transactions relating to life insurance companies
713-M General insurance companies
Table of sections
713-500 Object of Subdivision
713-505 When this Subdivision applies (first case)
713-510 When this Subdivision applies (second case)
713-515 Entities must choose the relief
713-525 Time of transfer
713-530 What the relief is
713-535 Subsequent consequences
713-540 Requirement to notify happening of new event
713-545 Discount capital gain in certain cases