Taxation Determination

TD 2004/70A1 - Addendum

Income tax: consolidation: does the phrase 'is taken into account at a later time' in paragraph 705-80(1)(a) of the Income Tax Assessment Act 1997 require that an accounting liability, or a change in the amount of an accounting liability, of a joining entity that is first recognised after the joining time be examined when determining whether or not section 705-80 of that Act applies?

• Please note that the PDF version is the authorised version of this ruling.
  View the consolidated version for this notice.

Addendum

This Addendum amends Taxation Determination TD 2004/70 to reflect changes introduced by Schedule 5 to the Tax Laws Amendment (2010 Measures No. 1) Act 2010. This Addendum also updates TD 2004/70 to reflect the issue of Taxation Ruling TR 2006/6.

TD 2004/70 is amended as follows:

1. Paragraph 1

Omit 'Income Tax Assessment Act (ITAA 1997)'; substitute 'Income Tax Assessment Act 1997 (ITAA 1997)^[1]'.

2. Paragraph 4

Omit:

for income tax purposes, an accounting liability, or a change in the amount of an accounting liability, (other than one owed to a *member of the joined group) is taken into account at a later time than is the case in accordance with *accounting standards or statements of accounting concepts made by the Australian Accounting Standards Board [AASB].

Substitute:

for income tax purposes, an accounting liability, or a change in the amount of an accounting liability, (other than one owed to a *member of the joined group) is taken into account at a later time than is the case in accordance with the joining entity's *accounting principles for tax cost setting.

3. Paragraph 6

(a) Omit 'TD 2004/71'; substitute 'Taxation Determination TD 2004/71'.

(b) Omit 'Taxation Ruling 2004/14'; substitute 'Taxation Rulings TR 2004/14 and TR 2006/6'.

4. Paragraph 7, dot point 1

Omit 'the accounting standards or statements mentioned in paragraph 3'; substitute 'the joining entity's accounting principles for tax cost setting'.

5. Related Rulings/Determinations

Insert 'TR 2006/6'.

6. Subject references

(a) Omit:

-

statements of accounting concepts

(b) Insert:

-

accounting principles

-

joining entity's accounting principles for tax cost setting

This Addendum applies on and from 10 February 2010, the date of application of the amendments to the Income Tax Assessment Act 1997 made by Part 8 of Schedule 5 to Tax Laws Amendment (2010 Measures No. 1) Act 2010.

Commissioner of Taxation
23 March 2011

References

ATO references:
NO 1-2F7RL1Y