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-H - Cancelling loss on realisation event for direct or indirect interest in a member of a consolidated group  

SECTION 715-615   Exception for interests in entity leaving consolidated group  

Membership interests in leaving entity

715-615(1)    

If:

(a) the realised interest is a ^* membership interest; and

(b) during the ownership period the first entity ceased to be a ^* subsidiary member of a ^* consolidated group;

the first condition in section 715-610 cannot be satisfied, because of that consolidated group, at a time when the first entity was a member of the group, unless the interest needed to be disregarded under section 703-35 (about employee shares), or section 703-37 (about ADI restructures), in order for the first entity to be a member of the group at that time.

Liabilities owed by leaving entity

715-615(2)    
If the realised interest:

(a) consists of a liability owed by the first entity to the owner; and

(b) became an asset of the owner because subsection 701-1(1) (the single entity rule) ceased to apply to the first entity when it ceased to be a ^* subsidiary member of a ^* consolidated group;

the first condition in section 715-610 cannot be satisfied, because of that consolidated group, at a time when the first entity was a member of the group.