Income Tax Assessment Act 1997
View history note
Hide history noteThis section has effect if:
(a) an entity becomes a * subsidiary member of a * consolidated group at a time (the joining time ); and
(b) the entity ' s * ordinary income and * statutory income were not (to any extent) assessable income just before the joining time.
715-900(2)
Division 57 in Schedule 2D to the Income Tax Assessment Act 1936 and Division 58 of this Act have effect as if the entity ' s * ordinary income or * statutory income had become to some extent assessable income just before the joining time.
Note 1:
Those Divisions deal with entities whose ordinary income and statutory income were previously exempt from income tax.
Note 2:
The operation of Division 58 just before the joining time can affect the basis on which the tax cost is set for a depreciating asset that becomes an asset of the head company of the consolidated group at the joining time because of section 701-1 (the single entity rule). That Division provides the basis for working out under Division 40 the asset ' s adjustable value. This is the entity ' s terminating value for the asset, which in turn can affect the tax cost setting amount for the asset under sections 705-40 , 705-45 and 705-47 .
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