New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)

Schedule 10   Consolidation: transitional rules for MEC tax cost setting provisions

Income Tax (Transitional Provisions) Act 1997

2   At the end of Part 3-90

Add:

Division 719 MEC rules

Table of Subdivisions

719-C Cost setting

719-F Losses

Subdivision 719-C - Cost setting

Table of sections

719-160 Transitional cost setting rules on joining have effect with modifications

719-165 Modified effect of paragraph 701-45(1)(b)

719-160 Transitional cost setting rules on joining have effect with modifications

(1) Section 719-160 of theIncome Tax Assessment Act 1997 has effect in relation to the provisions of this Act mentioned in subsection (2) in the same way as that section has effect in relation to the provisions mentioned in subsection 719-160(3) of theIncome Tax Assessment Act 1997.

(2) The provisions are Divisions 701 and 702 of this Act, other than:

(a) section 701-5; and

(b) section 701-40; and

(c) section 701-45.

(3) However, that effect of section 719-160 of theIncome Tax Assessment Act 1997 is subject to modifications set out in this Division.

719-165 Modified effect of paragraph 701-45(1)(b)

(1) This section applies if the transitional group mentioned in paragraph 701-45(1)(b) of this Act is a MEC group.

(2) That paragraph applies as if the reference in that paragraph to the entity that became the head company were a reference to any entity that became a member of the group, and that was an eligible tier-1 company, at the time the transitional group came into existence.

Subdivision 719-F - Losses

Table of sections

719-305 Available fraction for bundle of losses not affected by concessional rules

719-305 Available fraction for bundle of losses not affected by concessional rules

To avoid doubt, sections 707-325 and 707-327 do not apply for the purposes of working out the available fraction for the bundle of losses that are taken under subsection 719-305(2) of theIncome Tax Assessment Act 1997 to be transferred under Subdivision 707-A of that Act.

[The next Division is Division 820.]