Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 701C - Modified application etc. of provisions of Income Tax Assessment Act 1997: transitional foreign-held membership structures  

Subdivision 701C-C - Modifications of tax cost setting rules  

Other modifications

SECTION 701C-40  

701C-40   Cost setting rules for exit cases - modification of core rules  

Section 701-15 of the Income Tax Assessment Act 1997 applies as if the following subsection were added at the end of the section:

Application to transitional foreign-held subsidiaries

(4) If an entity that ceases to be a subsidiary member is a transitional foreign-held subsidiary when it does so:

(a) this section applies to each membership interest in the transitional foreign-held subsidiary that is held by an entity (an eligible non-resident ) of a kind mentioned in subparagraph 701C-20 (b)(i), (ii), (iii) or (iv) of the Income Tax (Transitional Provisions) Act 1997 in the same way as it applies to a membership interest in the transitional foreign-held subsidiary that is held by the head company; and

(b) for that purpose, the definition of head company core purposes in subsection 701-1(2) of the Income Tax Assessment Act 1997 applies to the eligible non-resident in the same way as it applies to the head company.