Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.900

  (1)   This section has effect if:

  (a)   an entity becomes a * subsidiary member of a * consolidated group at a time (the joining time ); and

  (b)   the entity's * ordinary income and * statutory income were not (to any extent) assessable income just before the joining time.

  (2)   Division   57 in Schedule   2D to the Income Tax Assessment Act 1936 and Division   58 of this Act have effect as if the entity's * ordinary income or * statutory income had become to some extent assessable income just before the joining time.

Note 1:   Those Divisions deal with entities whose ordinary income and statutory income were previously exempt from income tax.

Note 2:   The operation of Division   58 just before the joining time can affect the basis on which the tax cost is set for a depreciating asset that becomes an asset of the head company of the consolidated group at the joining time because of section   701 - 1 (the single entity rule). That Division provides the basis for working out under Division   40 the asset's adjustable value. This is the entity's terminating value for the asset, which in turn can affect the tax cost setting amount for the asset under sections   705 - 40, 705 - 45 and 705 - 47.

Table of sections

715 - 910   Effect on restructures--original entity becomes a subsidiary member

715 - 915   Effect on restructures--original entity is a head company

715 - 920   Effect on restructures--original entity is a head company that becomes a subsidiary member of another group

715 - 925   Effect on restructures--original entity ceases being a subsidiary member