Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 701 - Core rules  

Supporting provisions  

SECTION 701-58   Effect of setting the tax cost of an asset that the head company does not hold under the single entity rule  

701-58(1)    
This section applies if:

(a) the ^* tax cost of an asset was set at the time (the joining time ) an entity became a ^* subsidiary member of a ^* consolidated group, at the asset ' s ^* tax cost setting amount; and

(b) ignoring the operation of subsection 701-1(1) (the single entity rule), the entity held the asset at the joining time; and

(c) taking into account the operation of subsection 701-1(1) (the single entity rule), the ^* head company of the group did not hold the asset at the joining time.

Example:

A debt owed by a member of the group to the joining entity at the joining time.

701-58(2)    

To avoid doubt, the asset ' s ^* tax cost setting amount mentioned in paragraph (1)(a) is not to be taken into account in applying the provisions mentioned in subsections 701-55(2) , (3) , (3A) , (4) , (5) , (5A) , (5C) , (5D) , and (6) in relation to the asset at and after the joining time.