Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.615

Membership interests in leaving entity

  (1)   If:

  (a)   the realised interest is a * membership interest; and

  (b)   during the ownership period the first entity ceased to be a * subsidiary member of a * consolidated group;

the first condition in section   715 - 610 cannot be satisfied, because of that consolidated group, at a time when the first entity was a member of the group, unless the interest needed to be disregarded under section   703 - 35 (about employee shares), or section   703 - 37 (about ADI restructures), in order for the first entity to be a member of the group at that time.

Liabilities owed by leaving entity

  (2)   If the realised interest:

  (a)   consists of a liability owed by the first entity to the owner; and

  (b)   became an asset of the owner because subsection   701 - 1(1) (the single entity rule) ceased to apply to the first entity when it ceased to be a * subsidiary member of a * consolidated group;

the first condition in section   715 - 610 cannot be satisfied, because of that consolidated group, at a time when the first entity was a member of the group.