Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 715.380

Transitional balancing adjustments

  (1)   Subsection   (2) applies if:

  (a)   an entity (the leaving entity ) ceases to be a subsidiary member of a consolidated group at a time (the leaving time ); and

  (b)   but for the cessation of membership and section   701 - 40 of the Income Tax Assessment Act 1997 (the exit history rule), the head company of the group would be subject to a balancing adjustment under item   104 of Schedule   1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 for an income year ending after the leaving time.

  (2)   Despite section   701 - 40 of the Income Tax Assessment Act 1997 (the exit history rule), the head company of the consolidated group continues to be subject to the balancing adjustment for income years ending after the leaving time.

Table of sections

715 - 658   Application

715 - 659   Extension of time for making choice if joining time was before commencement