Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 713 - Rules for particular kinds of entities  

Subdivision 713-E - Partnerships  

Special rules where partnership joins consolidated group

SECTION 713-235   Partnership joins group - set tax cost of partnership assets  

713-235(1)    
This section applies if a partnership becomes a ^* subsidiary member of a ^* consolidated group at a time (the joining time ).

713-235(2)    
In applying the provisions mentioned in subsection 713-205(3) in relation to the partnership:

(a) do not work out an allocable cost amount for the partnership; and

(b) work out the ^* tax cost setting amount for each asset of the partnership covered by subsection (3), in accordance with section 713-240 .

Note:

If a partner in the partnership becomes a subsidiary member of the group at the joining time, tax cost setting amounts are worked out for the assets of the partner (including partnership cost setting interests) before tax cost setting amounts are worked out for the assets of the partnership.

713-235(3)    
An asset of the partnership at the joining time is covered by this subsection, unless it would be an excluded asset for the purposes of section 705-35 on the assumption that tax cost setting amounts were worked out for the assets of the partnership under Division 705 (instead of section 713-240 ).