Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

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History

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

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

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History

Div 705 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

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

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History

Subdiv 705-A inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

How to work out the allocable cost amount

SECTION 705-110   If joining entity transfers a loss to the head company - step 6 in working out allocable cost amount  

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705-110(1)    

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For the purposes of step 6 in the table in section 705-60 , the step 6 amount is worked out by multiplying the sum of the losses mentioned in subsection (2) by the ^* corporate tax rate.

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S 705-110(1) amended by No 97 of 2008 , s 3 and Sch 3 item 145, by substituting " *corporate tax rate " for " *general company tax rate " , effective 3 October 2008.

705-110(2)    
The losses are the joining entity's losses of any ^* sort that:

(a) were not ^* utilised by the joining entity for the income year in which the joining time occurred or any earlier income year; and

(b) did not accrue to the joined group before the joining time (see subsection 705-90(8) ); and

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(c) are transferred to the ^* head company under Subdivision 707-A ; and

(d) are not cancelled under section 707-145 .

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History

S 705-110(2) amended by No 90 of 2002, s 3 and Sch 2 item 33, by substituting " 705-90(8) " for " 705-90(4) " in para (b), effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

S 705-110 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

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