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

Schedule 3  

Part 3   Prospective rules

Income Tax Assessment Act 1997

31   Subsections 701-56(1) and (2)

Repeal the subsections, substitute:

(1) Subsection (2) applies in relation to each asset that would be an asset of an entity at the time (the joining time ) it becomes a *subsidiary member of a *consolidated group, assuming that subsection 701-1(1) (the single entity rule) did not apply.

(1A) Subsection (2) applies only to the extent necessary for the purposes of subsection 701-55(6) to determine whether a provision of this Act is to apply in relation to each of those assets on and after the joining time.

(1B) Subsection (2) applies despite section 701-5 (the entry history rule).

(2) Treat the *head company as having acquired each of those assets at the joining time as part of acquiring the business of the joining entity as a going concern.