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-E - Adjustments for errors etc.  

Operative provisions

SECTION 705-320   Tax cost setting amounts taken to be correct  

705-320(1)    
For the purposes of this Act (other than this Subdivision) and for the purposes of the Taxation Administration Act 1953 , any ^* tax cost setting amounts that were worked out by the ^* head company, so far as they were due to the errors, are taken to have been correct if the conditions in section 705-315 are satisfied.

Note 1:

If the conditions in section 705-315 are satisfied, CGT event L6 happens (see section 104-525 ).

Note 2:

Subsection (1) means that the Commissioner cannot amend any assessments necessary to correct the errors, and that (except as mentioned in subsection (2)) no offences or administrative penalties arise in respect of the errors.

705-320(2)    
Subsection (1) does not apply for the purposes of determining whether there is an offence against section 8N of the Taxation Administration Act 1953 , or an administrative penalty under section 284-75 or 284-145 in Schedule 1 to that Act, in relation to statements made before the Commissioner became aware of the errors.

Note 1:

Section 8N of the Taxation Administration Act 1953 deals with false or misleading statements. Sections 284-75 and 284-145 in Schedule 1 to that Act set out the circumstances in which an entity is liable for an administrative penalty.

Note 2:

The offence and administrative penalty provisions however apply on a modified basis - see subsection 8W(1C) of the Taxation Administration Act 1953 , and subsections 284-80(2) and 284-150(2) in Schedule 1 to that Act.