Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.385

  (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)   the * head company of the group has a * Division   230 financial arrangement at the leaving time because the leaving entity is taken by subsection   701 - 1(1) (the single entity rule) to be a part of the head company; and

  (c)   after the leaving time, the leaving entity makes an election of a kind mentioned in section   230 - 220 (fair value method), 230 - 265 (foreign exchange retranslation method), 230 - 325 (hedging method) or 230 - 410 (reliance on financial reports method).

  (2)   For the purposes of determining whether the election applies to the financial arrangement, disregard paragraphs 230 - 220(1)(d), 230 - 265(1)(d), 230 - 325(a) and 230 - 410(1)(b)).

Table of sections

715 - 410   Extension of single entity rule and entry history rule

715 - 450   No reductions or other consequences for interests subject to loss cancellation under Subdivision   715 - H