Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-A - Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation  

Effect on Subdivision 165-CC of entity leaving consolidated group

SECTION 715-80  

715-80   Application of sections 715-85 to 715-110  

Sections 715-85 to 715-110 apply if, at a particular time (the leaving time ), an entity (the leaving entity ) ceases to be a ^* subsidiary member of a ^* consolidated group.

Note 1:

If a changeover time happened to the head company at or after the group came into existence and before the leaving time, Subdivision 165-CC does not apply to the head company at and after the leaving time, in respect of assets that leave with the leaving entity, in relation to the changeover time.

This is because the head company can no longer make a capital loss, or become entitled to a deduction, in respect of a CGT event happening to any of those assets.

Note 2:

If, just before the leaving time, the head company had a loss denial pool, see section 715-120 .