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 705-110   If joining entity transfers a loss to the head company - step 6 in working out allocable cost amount  

705-110(1)    

For the purposes of step 6 in the table in section 705-60 , the step 6 amount is worked out by multiplying the sum of the losses mentioned in subsection (2) by the ^* corporate tax rate.

705-110(2)    
The losses are the joining entity's losses of any ^* sort that:

(a) were not ^* utilised by the joining entity for the income year in which the joining time occurred or any earlier income year; and

(b) did not accrue to the joined group before the joining time (see subsection 705-90(8) ); and

(c) are transferred to the ^* head company under Subdivision 707-A ; and

(d) are not cancelled under section 707-145 .