Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 716 - Miscellaneous special rules  

Subdivision 716-G - Low-value and software development pools  

Software development pools if entity leaves consolidated group

SECTION 716-345   Head company taken not to have incurred expenditure  

716-345(1)    
This section has effect if:

(a) an entity (the leaving entity ) ceases to be a ^* subsidiary member of a ^* consolidated group at a time in an income year (the leaving year ); and

(b) under section 701-40 (Exit history rule), expenditure is taken to have been allocated by the leaving entity to a software development pool.

Note:

Section 701-40 treats expenditure incurred by the head company of the consolidated group and allocated by that company to a software development pool as having been incurred by the leaving entity and allocated by it to a software development pool.

716-345(2)    
Work out deductions of the ^* head company of the ^* consolidated group for income years after the leaving year as if the head company had not incurred the expenditure.

716-345(3)    
The leaving entity cannot deduct an amount for the leaving year for the expenditure it is taken to have allocated to the software development pool.