Tax Laws Amendment (2012 Measures No. 2) Act 2012 (99 of 2012)

Schedule 3  

Part 1   Pre rules

Income Tax Assessment Act 1997

1   Subsection 701-55(5C)

Repeal the subsection, substitute:

Rights to future amounts

(5C) If:

(a) the asset’s tax cost is set because an entity becomes a *subsidiary member of a *consolidated group at the particular time; and

(b) section 716-410 (rights to amounts that are expected to be included in assessable income) covers the asset at the particular time; and

(c) the asset is not a *non-deductible right to future income;

the expression means that section 716-405 may apply in relation to the asset after the particular time.

Consumable stores

(5D) If:

(a) the asset’s tax cost is set because an entity becomes a *subsidiary member of a *consolidated group at the particular time; and

(b) the asset is consumable stores;

the expression means that, for the purposes of section 8-1, the *head company of the group is taken to have incurred an outgoing at the particular time in acquiring the asset equal to the asset’s *tax cost setting amount.


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