Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 715-355 Head company ' s own deferred losses at formation time 715-355(1)
This section applies if, at the time (the formation time ) when a * consolidated group comes into existence, the * head company has (otherwise than because of section 701-5 (Entry history rule)) a * 170-D deferred loss that:
(a) it made on a * CGT asset that is a * 165-CC tagged asset of the head company because of paragraph 165-115A(1A)(b) (which covers CGT assets on which it has 170-D deferred losses); and
(b) has not * revived.
715-355(2)
If a * loss denial pool of the * head company is created under section 715-60 at the formation time, each * 170-D deferred loss of that kind that the head company has at that time is added to the loss denial pool at that time.
715-355(3)
Otherwise, a loss denial pool of the * head company is created at the formation time if:
(a) the formation time is not a * changeover time for the head company; and
(b) the head company ' s * final RUNL just before the formation time (as reduced by any reductions under section 715-50 or 715-55 ) was greater than nil; and
(c) the head company does not satisfy the *business continuity test for:
(i) the period (the business continuity test period ) consisting of the head company ' s * trial year; and
(ii) the time (the test time ) just before the * changeover time.
Note:
Paragraph (3)(b) has the effect that if the head company has 165-CC tagged assets that are affected by section 715-50 or 715-55 (because they are membership interests in, or accounting liabilities owed by, another group member), those sections are applied before this section.
715-355(4)
When it is created because of subsection (3), the pool consists of each * 170-D deferred loss covered by subsection (2), and its loss denial balance is equal to the * final RUNL referred to in paragraph (3)(b).
Note:
The pool is distinct from any other loss denial pool of the head company, for example, one created at the formation time under section 715-360 .
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
