Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between the consolidation rules and other areas of the income tax law  

Subdivision 715-F - Interactions with Division 230 (financial arrangements)  

SECTION 715-380   Exit history rule not to affect certain matters related to Division 230 financial arrangements  

Transitional balancing adjustments

715-380(1)    
Subsection (2) applies if:

(a) an entity (the leaving entity ) ceases to be a subsidiary member of a consolidated group at a time (the leaving time ); and

(b) but for the cessation of membership and section 701-40 of the Income Tax Assessment Act 1997 (the exit history rule), the head company of the group would be subject to a balancing adjustment under item 104 of Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 for an income year ending after the leaving time.

715-380(2)    
Despite section 701-40 of the Income Tax Assessment Act 1997 (the exit history rule), the head company of the consolidated group continues to be subject to the balancing adjustment for income years ending after the leaving time.