New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)
Schedule 6 Consolidation: losses
Part 3 Effect of exit history rule
Income Tax Assessment Act 1997
5 At the end of Subdivision 707-D
Add:
707-410 Exit history rule does not treat entity as having made a loss
(1) To avoid doubt, if the*head company of a*consolidated group makes a loss of a particular*sort and an entity ceases to be a*subsidiary member of the group, the entity isnot taken because of section 701-40 (the exit history rule):
(a) to have made the loss; or
(b) to have made another loss of the same sort because of the circumstances that caused the head company to make the loss.
(2) It does not matter whether the*head company makes the loss because of a transfer under Subdivision 707-A (whether from the entity or another entity) or because of another provision.