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 711 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 ).

S 711-65(1) substituted by No 56 of 2010, s 3 and Sch 5 item 26, effective 3 June 2010. For application provision, see note under section 705-125(1) . S 711-65(1) formerly read:

When this section applies

711-65(1)
This section applies if:

(a) any of the assets (a pre-CGT factor asset ), that the ^* head company of the old group holds at the leaving time because the leaving entity is taken by subsection 701-1(1) to be a part of the head company, has a ^* pre-CGT factor under section 705-125 ; and

(b) section 711-70 (about the multiple exit of ^* subsidiary members) does not apply; and

(c) the leaving entity does not cease to be a subsidiary member of the old group where Subdivision 705-C (about the old group joining another consolidated group) applies.

S 711-65(1) amended by No 117 of 2002, s 3 and Sch 4 item 6, by substituting paras (b) and (c) for para (a) (second occurring), effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ). Para (a) (second occurring) formerly read:

(a) section 711-70 (about the multiple exit of ^* subsidiary members) does not apply.

S 711-65(1A) inserted by No 56 of 2010, s 3 and Sch 5 item 26, effective 3 June 2010. For application provision, see note under section 705-125(1) .

S 711-65(2) amended by No 56 of 2010, s 3 and Sch 5 item 27, by repealing the note, effective 3 June 2010. For application provision, see note under section 705-125(1) . The note formerly read:

Note:

Because of the deemed acquisition of the membership interests, this section is the only basis on which any of these interests can be pre-CGT assets.

S 711-65(4) amended by No 56 of 2010, s 3 and Sch 5 item 28, by substituting " section 705-125 " for " subsection (5) " in the definition of " leaving entity's pre-CGT proportion " , effective 3 June 2010. For application provision, see note under section 705-125(1) .

S 711-65(5) repealed by No 56 of 2010, s 3 and Sch 5 item 29, effective 3 June 2010. For application provision, see note under section 705-125(1) . S 711-65(5) formerly read:

Pre-CGT proportion

711-65(5)
Work out the leaving entity's pre-CGT proportion in this way: Leaving entity's pre-CGT proportion

Step 1.

For each ^* pre-CGT factor asset, multiply its ^* market value before the leaving time by its ^* pre-CGT factor.

Step 2.

Add up all the results of step 1.

Step 3.

Add up the ^* market values of all the assets that the ^* head company holds at the leaving time because the leaving entity is taken by section 701-1 to be a part of the head company.

Step 4.

Divide the result of step 2 by the result of step 3.

S 711-65(8) inserted by No 117 of 2002, s 3 and Sch 5 item 4, 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 711-65 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 ).