Taxation Laws Amendment Act (No. 2) 2004 (20 of 2004)

Schedule 8   Consolidation

Part 2   Research and development

Income Tax Assessment Act 1936

11   After section 73BAC

Insert:

73BACA History for purposes of eligibility for tax offset: leaving entity

If:

(a) a company ceases to be a subsidiary member of a consolidated group or MEC group; and

(b) while the company was a subsidiary member, things happened in relation to an entity with which, if section 701-1 (the single entity rule) of the Income Tax Assessment Act 1997 were disregarded, the company would have been grouped (within the meaning of section 73L of this Act); and

(c) those things would, if section 701-1 of the Income Tax Assessment Act 1997 were disregarded, have been taken into account in applying paragraph 73J(1)(c) or (d) of this Act to determine whether the company is eligible to choose a tax offset; and

(d) the things are not also things that, because of section 701-40 (the exit history rule) of the Income Tax Assessment Act 1997, are taken into account as things happening in relation to an eligible asset etc. (within the meaning of that section) of the company in applying paragraph 73J(1)(c) or (d) of this Act to determine for the entity core purposes whether the company is eligible to choose a tax offset;

the things are taken into account in applying paragraph 73J(1)(c) or (d) of this Act to determine whether the company is eligible to choose a tax offset.

Note: The heading to section 73BAD is altered by inserting " for purposes of sections 73P to 73Z " after " expenditure ".