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-W - Effect on arrangements where CGT roll-overs are obtained  

SECTION 715-910   Effect on restructures - original entity becomes a subsidiary member  

715-910(1)    
This section applies if:

(a) as a result of an *arrangement to which section 124-784A applies, an original entity (within the meaning of that section) becomes a *subsidiary member of a *consolidated group; and

(b) section 715-920 does not apply.

Note 1:

Section 715-920 applies if the original entity was the head company of another consolidated group before the arrangement was completed.

Note 2:

Sections 124-784A and 124-784B apply to arrangements for restructures.

715-910(2)    
For the purposes of section 124-784B :

(a) the completion time (within the meaning of that section) for the *arrangement is taken to be the time the original entity becomes a member of the group; and

(b) disregard Division 701 (Core rules) in relation to the original entity becoming a member of the group.

715-910(3)    
The *head company of the group may choose for:

(a) section 701-10 (cost to head company of assets of joining entity); and

(b) subsection 701-35(4) (setting value of trading stock at tax-neutral amount); and

(c) subsection 701-35(5) (setting value of registered emissions unit at tax-neutral amount);

not to apply to the original entity's assets in respect of the original entity becoming a *subsidiary member of the group.

Note:

This subsection does not affect the application of subsection 701-1(1) (the single entity rule).