Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 712.305

  (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