Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 705.76

    This section covers an accounting liability (the securitisation liability ) if the following circumstances exist:

  (b)   in working out the step 2 amount mentioned in subsection   705 - 70(1) in relation to the joining entity, an amount would be added under that subsection for the securitisation liability (disregarding subsection   705 - 70(4));

  (c)   the joining entity transferred or equitably assigned one or more assets (the underlying securitised assets ) to another entity before the joining time;

  (d)   the securitisation liability:

  (i)   arose from the transfer or equitable assignment of the underlying securitised assets; and

  (ii)   is a liability of the joining entity at the joining time (according to the joining entity's * accounting principles for tax cost setting);

  (e)   the other entity was established for the purpose of securitising assets;

  (f)   the underlying securitised assets were securitised in accordance with that purpose before the joining time;

  (g)   at the joining time the * market value of the joining entity's interest in the underlying securitised assets is nil, or is substantially less than the amount of the securitisation liability.