New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 8   Consolidation: various provisions about CFCs, FIFs and FLPs

Income Tax Assessment Act 1997

8   Subsection 717-265(5)

Repeal the subsection, substitute:

(5) That Part operates in relation to the leaving company, in relation to the *FIF in respect of the notional accounting period of that FIF that included the leaving time, as if any interest in the FIF of which the leaving company became the holder because subsection 701-1(1) (the single entity rule) ceased to apply at the leaving time had been acquired by the leaving company at that time.

(6) Paragraph 538(2)(d) of that Act operates in relation to the leaving company, in relation to the *FIF in respect of the notional accounting period of that FIF that included the leaving time, as if the amount or value of the consideration paid or given by the leaving company in respect of any acquisition mentioned in subsection (5) of this section was equal to the amount worked out under paragraph 538(2)(a) of that Act in relation to the transferor company in relation to the FIF in respect of the notional accounting period mentioned in subsection (2) of this section.