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 ).

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 ).

Subdiv 705-B inserted by No 90 of 2002, s 3 and Sch 3 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 ).

S 705-147(3) substituted by No 56 of 2010, s 3 and Sch 5 item 47, applicable on and after 1 July 2002. S 705-147(3) formerly read:

Step 3A amount for assets consisting of membership interests held by subsidiary members in other subsidiary members

705-147(3)
If:

(a) before the formation time:

(i) there was a roll-over under Subdivision 126-B (a Subdivision 126-B roll-over ) in relation to a ^* CGT event that happened in relation to an asset (the roll-over asset ); or

(ii) former section 160ZZO of the Income Tax Assessment Act 1936 applied in relation to a disposal (a section 160ZZO roll-over ) of an asset (also the roll-over asset ); and

(b) the originating company in relation to the Subdivision 126-B roll-over, or the transferor in relation to the section 160ZZO roll-over, was a foreign resident; and

(c) the recipient company in relation to the Subdivision 126-B roll-over, or the transferee in relation to the section 160ZZO roll-over, was an Australian resident and was not the entity that became the ^* head company of the group; and

(d) between the Subdivision 126-B roll-over, or the section 160ZZO roll-over, and the formation time, no other CGT event happened in relation to the roll-over asset for which there was not a Subdivision 126-B roll-over or a section 160ZZO roll-over; and

(e) the roll-over asset is a ^* membership interest in an entity that becomes a ^* subsidiary member at the formation time, other than one that is held at that time by the entity that becomes the head company of the group;

then, subject to subsection (5), there is under section 705-93 a step 3A amount for the purpose of working out the group ' s ^* allocable cost amount for the entity (the subject entity ) that holds the roll-over asset at the formation time.

S 705-147(3) amended by No 101 of 2006 , s 3 and Sch 2 item 733, by amending the reference to a repealed inoperative provision in para (a)(ii), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .

S 705-147(4) repealed by No 56 of 2010, s 3 and Sch 5 item 47, applicable on and after 1 July 2002. S 705-147(4) formerly read:

What the step 3A amount is

705-147(4)
The step 3A amount is:

(a) if, as a result of the Subdivision 126-B roll-over mentioned in subparagraph (3)(a)(i), or the section 160ZZO roll-over mentioned in subparagraph (3)(a)(ii), a ^* capital loss of the originating company was disregarded or a capital loss of the transferor was not incurred - an increase amount equal to the capital loss; or

(b) if, as a result of the Subdivision 126-B roll-over mentioned in subparagraph (3)(a)(i), or the section 160ZZO roll-over mentioned in subparagraph (3)(a)(ii), a ^* capital gain of the originating company was disregarded or a capital gain of the transferor did not accrue - a reduction amount equal to the capital gain.

S 705-147(5) repealed by No 56 of 2010, s 3 and Sch 5 item 47, applicable on and after 1 July 2002. S 705-147(5) formerly read:

Apportionment of step 3A amount among first level interposed entities

705-147(5)
If at the formation time one or more entities, that become ^* subsidiary members of the group and in which the ^* head company holds ^* membership interests, are interposed between the head company and the subject entity, then the step 3A amount is apportioned among those entities and the subject entity in the same way as a step 3A amount is apportioned under subsection (2).

S 705-147 inserted by No 16 of 2003, s 3 and Sch 1 item 15, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).