Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 713 - Rules for particular kinds of entities  

Subdivision 713-E - Partnerships  

Setting tax cost of partnership cost setting interests

SECTION 713-220   Set tax cost of partnership cost setting interests if partner joins consolidated group  

713-220(1)    
This section applies if an entity (the joining entity ) that is a partner in a partnership becomes a ^* subsidiary member of a ^* consolidated group at a time (the joining time ).

Note:

If the partnership becomes a subsidiary member of the group at the joining time, the application of this section is affected by section 713-235 .

713-220(2)    
In applying the provisions mentioned in subsection 713-205(3) in relation to the joining entity:

(a) work out the ^* tax cost setting amount for each ^* partnership cost setting interest in the partnership that the joining entity holds at the joining time, in accordance with section 713-225 ; and

(b) except for the purposes of section 713-235 (which applies only if the partnership joins the group), do not work out tax cost setting amounts for the assets of the partnership; and

(c) do not work out tax cost setting amounts for the ^* membership interests in the partnership held by the joining entity.

Note 1:

Because of paragraphs (b) and (c), no amount of allocable cost amount for the joining entity is allocated to the assets of the partnership, or to membership interests in the partnership held by the joining entity.

Note 2:

If assets of the partnership are held on revenue account, the related partnership cost setting interests held by the joining entity have their tax cost set at the joining time. However, that tax cost does not alter calculations of the net income or exempt income of the partnership, or of a partnership loss, for the purposes of section 92 of the Income Tax Assessment Act 1936 .