Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subsection 701 - 1(1) (Single entity rule) and section 701 - 5 (Entry history rule) also have effect for all the purposes of Part 3 - 95 (Value shifting).
Note: One consequence of this for the operation of Division 727 (about indirect value shifting affecting interests in companies and trusts, and arising from non - arm's length dealings) is that economic benefits provided by or to a subsidiary member of a consolidated group are treated as provided by or to the head company of the group. As a result:
• the head company is the only group member that can be a losing entity or gaining entity for an indirect value shift; and
• economic benefits provided by one group member to another are treated as provided by the head company to itself, and so have no relevance to Division 727.
Another consequence is that the head company is treated as owning all interests owned by group members in a losing entity or gaining entity that is not a group member.
(2) This section is not intended to limit the effect that subsection 701 - 1(1) and section 701 - 5 have apart from this section.