Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 707 - Losses for head companies when entities become members etc.  

Subdivision 707-D - Special rules about losses  

SECTION 707-410   Exit history rule does not treat entity as having made a loss  

707-410(1)    
To avoid doubt, if the ^* head company of a ^* consolidated group makes a loss of a particular ^* sort and an entity ceases to be a ^* subsidiary member of the group, the entity is not taken because of section 701-40 (the exit history rule):

(a) to have made the loss; or

(b) to have made another loss of the same sort because of the circumstances that caused the head company to make the loss.

707-410(2)    
It does not matter whether the ^* head company makes the loss because of a transfer under Subdivision 707-A (whether from the entity or another entity) or because of another provision.