Income Tax Assessment Act 1997
View history note
Hide history noteThis section applies if:
(a) an entity (the joining entity ) becomes a *subsidiary member of a *consolidated group; and
(b) paragraph 701-55(5A)(b) applies in relation to one or more assets of the joining entity.
701-61(2)
Work out if the total of the *Division 230 starting values for those assets exceeds or falls short of the total of their *tax cost setting amounts.
701-61(3)
If there is an excess, an amount equal to 25% of that excess is included in the *head company's assessable income for:
(a) the income year in which the particular time mentioned in subsection 701-55(5A) occurs; and
(b) each of the 3 subsequent income years.
701-61(4)
If there is a shortfall, the *head company is entitled to a deduction equal to 25% of that shortfall for:
(a) the income year in which the particular time mentioned in subsection 701-55(5A) occurs; and
(b) each of the 3 subsequent income years.
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