Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 705 - Tax cost setting amount for assets where entities become subsidiary members of consolidated groups  

Subdivision 705-A - Basic case: a single entity joining an existing consolidated group  

How to work out the allocable cost amount

SECTION 705-95  

705-95   Pre-joining time distributions out of certain profits - step 4 in working out allocable cost amount  

For the purposes of step 4 in the table in section 705-60 , the step 4 amount is the sum of all distributions made by the joining entity before the joining time that:

(a) the ^* head company receives directly, or would receive indirectly if entities interposed between the head company and the joining entity successively distributed any distribution they received immediately after receiving it; and

(b) were made out of profits:

(i) that did not accrue to the joined group before the joining time (see subsection 705-90(7) ); or

(ii) that accrued to the joined group before the joining time and recouped losses of any ^* sort that accrued to the joined group before that time (see subsection 705-90(8) ).

Note:

As well as subsection 705-90(7) , paragraph 705-90(9) (b) and subsection 705-90(10) are relevant to working out whether or not profits accrued to the joined group before the joining time.