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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 712.305

Reducing adjustable value of head company's notional asset

             (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

713-520    Conditions

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



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