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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS    View history reference

History

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Division 701 - Core rules    View history reference

History

Div 701 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Head company rules  

SECTION 701-10  Cost to head company of assets of joining entity  

 View history reference

701-10(1)  

This section has effect for the head company core purposes when the entity becomes a * subsidiary member of the group.

Assets to which section applies

701-10(2)  

 View history reference
This section applies in relation to each asset that would be an asset of the entity at the time it becomes a * subsidiary member of the group, assuming that subsection 701-1(1) (the single entity rule) did not apply.

Note:

See subsection 705-35(3) for the treatment of a goodwill asset resulting from the head company's ownership and control of the joining entity.

History

S 701-10(2) amended by No 83 of 2004.

Object

701-10(3)  

The object of this section (and Division 705 which relates to it) is to recognise the cost to the * head company of such assets as an amount reflecting the group's cost of acquiring the entity.

Setting tax cost of assets

701-10(4)  

Each asset's * tax cost is set at the time the entity becomes a * subsidiary member of the group at the asset's * tax cost setting amount.

Multiple setting of tax cost for same trading stock or registered emissions unit

701-10(5)  

However, if:


(a) the asset is * trading stock or a *registered emissions unit; and
 View history reference


(b) the asset's * tax cost is set by this section at more than one time (each of which is a setting time ) for the same income year;

then, except where subsection (6) applies, only the amount at which the tax cost is set at the last of the setting times is to be taken into account.

History

S 701-10(5) amended by No 132 of 2011, s 3 and Sch 2 item 30, by inserting " or a *registered emissions unit " in para (a), effective 2 April 2012.

701-10(6)  

 View history reference
If:


(a) the * head company's * terminating value for the asset; or


(b) the * value of the asset at the start of the income year;

is required to be worked out for one or more occasions when an entity (whether or not the same entity) ceases to be a * subsidiary member of the group in the income year, then the amount at which the asset's * tax cost is set by this section at a particular setting time is only taken into account in working out the head company's terminating value for a particular occasion if:


(c) the setting time occurs before the occasion; and


(d) there is no intervening setting time or occasion.

History

S 701-10(6) amended by No 58 of 2006 , s 3 and Sch 7 item 191, by substituting " *tax cost is set by this section " for " *tax cost is set by this subsection " , effective 24 October 2002.

701-10(7)  

(Repealed by No 99 of 2012)

History

S 701-10(7) repealed by No 99 of 2012, s 3 and Sch 3 item 27, effective 29 June 2012. For application provisions see note under s 701-55(5C) . S 701-10(7) formerly read:

Excluded assets
701-10(7) If an asset is an excluded asset under subsection 705-35(2) , its * tax cost is not set.

Note:

Excluded assets are assets such as entitlements to tax deductions.

History

S 701-10 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).


 



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