Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 716-345 Head company taken not to have incurred expenditure 716-345(1)
This section has effect if:
(a) an entity (the leaving entity ) ceases to be a * subsidiary member of a * consolidated group at a time in an income year (the leaving year ); and
(b) under section 701-40 (Exit history rule), expenditure is taken to have been allocated by the leaving entity to a software development pool.
Note:
Section 701-40 treats expenditure incurred by the head company of the consolidated group and allocated by that company to a software development pool as having been incurred by the leaving entity and allocated by it to a software development pool.
716-345(2)
Work out deductions of the * head company of the * consolidated group for income years after the leaving year as if the head company had not incurred the expenditure.
716-345(3)
The leaving entity cannot deduct an amount for the leaving year for the expenditure it is taken to have allocated to the software development pool.
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