Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-90 - CONSOLIDATED GROUPS

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Division 713 - Rules for particular kinds of entities

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Subdivision 713-E - Partnerships

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Special rules where partnership leaves consolidated group

SECTION 713-265 Partnership leaves group - adjustments to allocable cost amount of partner who also leaves group

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713-265(1)
This section has effect in working out the group ' s ^* allocable cost amount for a partner in the partnership, if the partner ceases to be a ^* subsidiary member of the group at the leaving time.

713-265(2)
Section 711-35 operates as if:

(a) a deduction to which the partnership becomes entitled (the partnership deduction ) were a deduction to which the partner becomes entitled, to the extent of the partner ' s individual share of the partnership deduction; and

(b) the deduction to which the partner becomes entitled were of the same kind as the partnership deduction.

Note:

These kinds of deductions include acquired deductions and owned deductions (within the meaning of section 711-35 ).

713-265(3)
Section 711-40 operates as if a liability owed by ^* members of the group to the partnership at the leaving time were a liability owed by members of the group to the partner at that time, to the extent of the partner ' s individual share of the liability.

713-265(4)

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If:

(a) in accordance with the *accounting principles that the partnership would use if it were to prepare its financial statements just before the leaving time (disregarding subsection 701-1(1) (the single entity rule)), a thing (the partnership liability ) is a liability of the partnership just before the leaving time; and

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(b) for that reason, the partnership liability is not an accounting liability of the partner just before the leaving time for the purposes of section 711-45 ;

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then section 711-45 operates as if the partnership liability were an accounting liability of the partner just before the leaving time, to the extent of the partner ' s individual share of the partnership liability.

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History

S 713-265(4) amended by No 56 of 2010, s 3 and Sch 5 items 109 and 110, by substituting " in accordance with the *accounting principles that the partnership would use if it were to prepare its financial statements just before the leaving time (disregarding subsection 701-1(1) (the single entity rule)) " for " according to *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board " and omitting " that can or must be recognised in the partnership ' s statement of financial position " from para (a), applicable on and after 10 February 2010.

S 713-265(4) amended by No 56 of 2010, s 3 and Sch 5 items 84 to 86, by substituting " is a liability of the partnership just before the leaving time " for " is a liability of the partnership at the leaving time " in para (a), " of the partner just before the leaving time " for " of the partner at the leaving time " in para (b) and substituting " of the partner just before the leaving time, " for " of the partner at the leaving time, " , applicable on and after 10 February 2010. No 56 of 2010, s 3 and Sch 5 item 87 contains the following application provision:

Application provision
(1)
The amendments made by this Division apply on and after the day on which the Bill that became this Act was introduced into the House of Representatives.

(2)
The amendments made are to be disregarded for the purposes of interpreting:

(a) the provisions amended, as they applied before the day mentioned in subitem (1); and

(b) any other provision of the Income Tax (Transitional Provisions) Act 1997 , as that provision applied before the day mentioned in subitem (1), to the extent that it relates to a provision mentioned in paragraph (a).

S 713-265 inserted by No 83 of 2004.

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