Tax Laws Amendment (2012 Measures No. 2) Act 2012 (99 of 2012)

Schedule 3  

Part 2   Interim rules

Income Tax Assessment Act 1997

18   Before subsection 701-56(3)

Insert:

Entry history rule

(1) To avoid doubt, if subsection 701-55(6) applies in relation to an asset at the time (the joining time ) an entity (the joining entity ) became a *subsidiary member of a *consolidated group, the things that are taken to have happened in relation to the *head company of the group under section 701-5 (the entry history rule) do not include:

(a) the cost, outgoing, expenditure or other amount incurred or paid to acquire the asset by the joining entity; and

(b) whether the cost, outgoing, expenditure or other amount incurred or paid by the joining entity to acquire the asset has been deducted by the joining entity before the joining time.

Trading stock

(2) Subsection 701-55(6) does not apply in relation to an asset if it is *trading stock.