Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 705 - Tax cost setting amount for assets where entities become subsidiary members of consolidated groups  

Subdivision 705-A - Basic case: a single entity joining an existing consolidated group  

How to work out the allocable cost amount

SECTION 705-102   FRT disallowed amounts accruing to joined group before joining time - step 5A in working out allocable cost amount  

705-102(1)    
For the purposes of step 5A in the table in section 705-60 , the step 5A amount is the sum of all *FRT disallowed amounts of the joining entity that:

(a)    had not been applied by the joining entity under paragraph 820-56(2)(b) for the income year in which the joining time occurred or any earlier income year; and

(b)    accrued to the joined group before the joining time (see subsection (2) of this section).

705-102(2)    
For the purposes of subsection (1) , a *FRT disallowed amount accrued to the joined group before the joining time if and to the extent that, assuming that as it arose it were instead a profit that was accruing, a distribution of that profit would have been a distribution made to the joined group out of profits that accrued to the joined group before the joining time.

705-102(3)    
However, a *FRT disallowed amount is not to be taken into account under subsection (1) to the extent that it reduced the undistributed profits comprising the step 3 amount in the table in section 705-60 .