Treasury Laws Amendment (Income Tax Consolidation Integrity) Act 2018 (14 of 2018)

Schedule 1   Consolidation

Part 3   Securitised assets: 2014 Budget

Income Tax Assessment Act 1997

13   After section 711-45

Insert:

711-46 Liability arising from transfer or assignment of securitised assets

This section covers an accounting liability (the securitisation liability ) if the following circumstances exist:

(a) just before the leaving time, a *member of the old group is an *ADI or a *financial entity;

(b) in working out the step 4 amount mentioned in subsection 711-45(1) in relation to the leaving entity, an amount would be added under that subsection for the securitisation liability (disregarding subsection 711-45(11));

(c) a member of the old group transferred or equitably assigned one or more assets (the underlying securitised assets ) to another entity before the leaving time;

(d) the securitisation liability:

(i) arose from the transfer or equitable assignment of the underlying securitised assets; and

(ii) is a liability of the leaving entity at the leaving time (according to the leaving entity's *accounting principles for tax cost setting);

(e) the other entity was established for the purpose of securitising assets;

(f) the underlying securitised assets were securitised in accordance with that purpose before the leaving time;

(g) at the leaving time the *market value of the leaving entity's interest in the underlying securitised assets is nil, or is substantially less than the amount of the securitisation liability.