S 701-63 substituted by No 99 of 2012, s 3 and Sch 3 item 33, effective 29 June 2012. For application provisions see note under s
701-55(5C)
. S 701-63 formerly read:
SECTION 701-63 Asset forming part of goodwill, right to future income, etc.
701-63(1)
Subsection (2) applies if an entity (the
joining entity
) became a subsidiary member of a
*
consolidated group at a time (the
joining time
).
701-63(2)
For the purposes of this Part (other than this section):
(a)
treat goodwill of a business of the joining entity as a single asset; and
(b)
treat an asset of that business of the joining entity that is an
*
asset forming part of goodwill as being part of that single asset; and
(c)
as a result of paragraph (b), do not treat an asset of that business of the joining entity that is an asset forming part of goodwill as a separate asset.
701-63(3)
An
asset forming part of goodwill
means any of the following:
(b)
a customer relationship asset, know-how asset or other accounting intangible asset, that is
not
any of the following:
(i)
a
*
CGT asset;
(ii)
a
*
revenue asset;
(iii)
a
*
depreciating asset;
(iv)
*
trading stock;
(v)
a thing that is or is part of a
*
Division 230 financial arrangement;
(vi)
goodwill;
(vii)
an excluded asset for the purposes of section
705-35
;
(c)
a
*
non-deductible right to future income.
701-63(4)
A
*
right to future income that is a right of an entity under a contract or agreement with another entity (the customer) is a
non-deductible right to future income
in relation to the entity to the extent that the value of the right to future income:
(a)
is contingent on the renewal of the contract or agreement; or
(b)
is attributable to a period (if any) during which the customer can unilaterally cancel the contract or agreement without paying compensation or a penalty; or
(c)
if there is a period during which the customer can unilaterally cancel the contract or agreement, but must pay compensation or a penalty
-
is attributable to that period, but not to that compensation or penalty.
701-63(5)
A
right to future income
is a valuable right (including a contingent right) to receive an amount for the performance of work or services or the provision of goods (other than
*
trading stock) if:
(a)
the valuable right forms part of a contract or agreement; and
(b)
the
*
market value of the valuable right (taking into account all the obligations and conditions relating to the right) is greater than nil; and
(c)
the valuable right is neither a
*
Division 230 financial arrangement nor a part of a Division 230 financial arrangement.
S 701-63 substituted by No 99 of 2012, s 3 and Sch 3 item 19, effective 29 June 2012. For application provisions see note under s
701-55(5C)
. S 701-63 formerly read:
SECTION 701-63 Asset forming part of goodwill, right to future income, etc.
701-63(1)
Subsection (2) applies if an entity (the
joining entity
) became a subsidiary member of a
*
consolidated group at a time (the
joining time
).
701-63(2)
For the purposes of this Part (other than this section):
(a)
treat goodwill of a business of the joining entity as a single asset; and
(b)
treat an asset of that business of the joining entity that is an
*
asset forming part of goodwill as being part of that single asset; and
(c)
as a result of paragraph (b), do not treat an asset of that business of the joining entity that is an asset forming part of goodwill as a separate asset.
701-63(3)
An
asset forming part of goodwill
means any of the following:
(a)
an intangible asset, the value of which is attributable to expected future profits from
*
life insurance policies or
*
general insurance policies;
(b)
a customer relationship asset, know-how asset or other accounting intangible asset, that is
not
any of the following:
(i)
a
*
CGT asset;
(ii)
a
*
revenue asset;
(iii)
a
*
depreciating asset;
(iv)
*
trading stock;
(v)
a thing that is or is part of a
*
Division 230 financial arrangement;
(vi)
goodwill;
(vii)
an excluded asset for the purposes of section 705-35;
(c)
a
*
non-deductible right to future income.
701-63(4)
A
non-deductible right to future income
is a
*
right to future income that is not an
*
unbilled income asset.
701-63(5)
A
right to future income
is a valuable right (including a contingent right) to receive an amount for the performance of work or services or the provision of goods if:
(a)
the valuable right forms part of a contract or agreement; and
(b)
the
*
market value of the valuable right (taking into account all the obligations and conditions relating to the right) is greater than nil; and
(c)
the valuable right is neither a
*
Division 230 financial arrangement nor part of a Division 230 financial arrangement.
701-63(6)
An asset that is a
*
right to future income is an
unbilled income asset
if:
(a)
the asset:
(i)
is in respect of work (but not goods) that has been performed, or partially performed, by an entity for another entity; or
(ii)
is in respect of goods (other than
*
trading stock) or services that have been provided, by an entity to another entity; and
(b)
a recoverable debt has not yet arisen in respect of the work, goods or services.
S 701-63 inserted by No 99 of 2012, s 3 and Sch 3 item 6, effective 29 June 2012. For application provisions see note under s
701-55(5C)
.
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