Taxation Laws Amendment Act (No. 2) 2004 (20 of 2004)

Schedule 8   Consolidation

Part 2   Research and development

Income Tax Assessment Act 1936

10   After section 73BAB

Insert:

73BABA History for purposes of eligibility for tax offset: joining entity

If:

(a) a company becomes a subsidiary member of a consolidated group or MEC group; and

(b) things happening in relation to the company before it became a subsidiary member are, because of section 701-5 (the entry history rule) of the Income Tax Assessment Act 1997, taken into account as things happening in relation to the head company of the group in applying paragraph 73J(1)(c) or (d) of this Act to determine for the head company core purposes whether the head company is eligible to choose a tax offset;

the things happening are not taken into account as mentioned in paragraph (b).

Note: The heading to section 73BAC is altered by inserting " for purposes of sections 73P to 73Z " after " history ".