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 705-93   If pre-joining time roll-over from foreign resident company or head company - step 3A in working out allocable cost amount  

When there is a step 3A amount

705-93(1)    
For the purposes of step 3A in the table in section 705-60 , there is a step 3A amount if:

(a) before the joining time:

(i) there was a roll-over under Subdivision 126-B (a Subdivision 126-B roll-over ) in relation to a ^* CGT event that happened in relation to an asset (the roll-over asset ); or

(ii) former section 160ZZO of the Income Tax Assessment Act 1936 applied in relation to a disposal (a section 160ZZO roll-over ) of an asset (also the roll-over asset ); and

(aa) at the joining time, as a result of the Subdivision 126-B roll-over or the section 160ZZO roll-over, the roll-over asset has:

(i) a *deferred roll-over gain; or

(ii) a *deferred roll-over loss; and

(b) the originating company in relation to the Subdivision 126-B roll-over, or the transferor in relation to the section 160ZZO roll-over:

(i) was a foreign resident; or

(ii) is the *head company in relation to the joined group; and

(c) the recipient company in relation to the Subdivision 126-B roll-over, or the transferee in relation to the section 160ZZO roll-over:

(i) was an Australian resident; and

(ii) is a *spread entity in relation to the joined group; and

(d) if the recipient company was previously a *subsidiary member of another consolidated group - the conditions in section 104-182 were not satisfied at any time in relation to the other group between the Subdivision 126-B roll-over, or the section 160ZZO roll-over, and the joining time; and

(e) the roll-over asset is not a ^* pre-CGT asset at the joining time; and

(f) the roll-over asset becomes that of the head company of the joined group because subsection 701-1(1) (the single entity rule) applies when the joining entity becomes a ^* subsidiary member of the group.

705-93(2)    

The step 3A amount is the amount of the *deferred roll-over gain or the *deferred roll-over loss mentioned in paragraph (1)(aa).