Taxation Determination

TD 2004/62A - Addendum

Income tax: consolidation tax cost setting rules: how does subsection 701-30(2) of the Income Tax (Transitional Provisions) Act 1997 modify the step 3 amount under section 705-90 of the Income Tax Assessment Act 1997?

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FOI status:

may be released

Addendum

This Addendum amends Taxation Determination TD 2004/62 to reflect the repeal of paragraph 705-90(6)(b) of the Income Tax Assessment Act 1997 by the Tax Laws Amendment (2004 Measures No. 7) Act 2005 (41 of 2005) by deleting references to the repealed paragraph and correcting references to renumbered paragraph 705-90(6)(a) (now subsection 705-90(6)). In addition, a sentence that described the operation of the repealed provision has been deleted.

TD 2004/62 is amended as follows:

1. Paragraph 1

(a) Omit the first reference to 'paragraph 705-90(6)(a)'; substitute 'subsection 705-90(6)'.

(b) Omit 'The paragraph 705-90(6)(a) amount is then reduced under paragraph 705-90(6)(b) to the extent that the undistributed profits recouped a loss for income tax purposes that accrued to the group.'

2. Paragraph 2

Omit 'subsections 705-90(3), (4) and (6)(b)'; substitute 'subsections 705-90(3) and (4)'.

3. Paragraph 6

(a) In Table 2, at 'Step 3' omit:

paragraph 705-90(6)(a)

substitute:

subsection 705-90(6)

(b) In Table 2, at 'Step 3' omit:

4. Paragraph 7

Omit 'paragraph 705-90(6)(a)'; substitute 'subsection 705-90(6)'.

5. Legislative References:

(a) Omit 'ITAA 1997 705-90(6)(a)'; substitute 'ITAA 1997 705-90(6)'.

(b) Omit 'ITAA 1997 705-90(6)(b)'.

This Addendum applies on and from 1 July 2002.

Commissioner of Taxation
16 August 2006

References

ATO references:
NO 2005/18404