Tax Laws Amendment (2004 Measures No. 7) Act 2005 (41 of 2005)

Schedule 6   Consolidation

Part 2   Amount of certain liabilities for purpose of calculating allocable cost amount on exit

Income Tax Assessment Act 1997

2   At the end of section 711-45

Add:

Adjustment where amount of liability differed for purpose of calculating allocable cost amount on entry

(8) If:

(a) a leaving entity's liability mentioned in any preceding subsection was taken into account in working out the *allocable cost amount for a *subsidiary member (whether or not the leaving entity) of the old group in accordance with Division 705 (the entry ACA ); and

(b) the amount (the entry amount ) of the liability that was so taken into account is different from the amount (the exit amount ) of the liability taken into account in applying the subsection; and

(c) the entry ACA was different from what it would have been if the exit amount, instead of the entry amount, had been taken into account in working it out;

then, for the purpose of applying the subsection, the liability is taken to be of an amount equal to the entry amount.