Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.380

Spreading fees gain or loss

  (1)   Subsection   (2) applies if:

  (a)   an entity (the leaving entity ) ceases to be a * subsidiary member of a * consolidated group at a time (the leaving time ); and

  (b)   but for the cessation of membership and section   701 - 40 (the exit history rule), the * head company of the group would spread a fees gain or loss mentioned in section   230 - 160 over a period that ended after the leaving time.

  (2)   Despite section   701 - 40 (the exit history rule), the * head company of the * consolidated group continues to spread the fees gain or loss over that period, in accordance with section   230 - 160.

Assessable income and deductions under section   701 - 61

  (3)   Subsection   (4) applies if:

  (a)   an entity (the leaving entity ) ceases to be a * subsidiary member of a * consolidated group at a time (the leaving time ); and

  (b)   but for the cessation of membership and section   701 - 40 (the exit history rule):

  (i)   an amount would be included in the assessable income of the * head company of the group under section   701 - 61 for an income year ending after the leaving time; or

  (ii)   the head company of the group would be entitled to a deduction under section   701 - 61 for an income year ending after the leaving time.

  (4)   Despite section   701 - 40 (the exit history rule), the amount is included in the assessable income of the * head company for the income year, or the head company is entitled to the deduction for the income year.