Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-B - How Subdivision 165-CD applies to consolidated groups and leaving entities  

How Subdivision 165-CD applies to leaving entity that is a company

SECTION 715-250   If head company has had an alteration time but ownership and control of leaving entity have not altered since  

715-250(1)    
This section applies if:

(a) at least one ^* alteration time has occurred in relation to the ^* head company of the ^* consolidated group since the formation time and before the leaving time; and

(b) the leaving time is not an ^* alteration time for the leaving entity under subsection 715-245(2) .

715-250(2)    
The leaving time is an alteration time for the leaving entity.

715-250(3)    
However, for the purposes of determining when the leaving entity's next ^* alteration time happens, the reference time under subsection 165-115L(2) or 165-115M(2) is the time just after the most recent alteration time for the ^* head company before the leaving time.

715-250(4)    
The leaving entity is a loss company at the leaving time if, and only if, the ^* head company would have had an ^* adjusted unrealised loss at the most recent ^* alteration time (the head company alteration time ) for the head company before the leaving time if that adjusted unrealised loss (if any) were worked out on the basis that:

(a) the head company chooses whether the ^* individual asset method or the ^* global method is used; and

(b) a ^* CGT asset is taken into account only if:

(i) the head company owned it at the head company alteration time; and

(ii) it becomes a CGT asset of the leaving entity at the leaving time because subsection 701-1(1) (the single entity rule) ceases to apply to the entity; and

(c) if the individual asset method is used, then for the purposes of:

(i) step 1 of the method statement in subsection 165-115U(1) ; and

(ii) the method statement in subsection 165-115W(1) ;

the head company had no earlier alteration time.

715-250(5)    
If the leaving entity is a ^* loss company at the leaving time, its overall loss at that time is the ^* adjusted unrealised loss worked out under subsection (4).