INCOME TAX ASSESSMENT ACT 1997 - SECT 701.56 Application of subsection 701 - 55(6)

INCOME TAX ASSESSMENT ACT 1997 - SECT 701.56

  (1)   Subsection   (2) applies in relation to each asset that would be an asset of an entity at the time (the joining time ) it becomes a * subsidiary member of a * consolidated group, assuming that subsection   701 - 1(1) (the single entity rule) did not apply.

  (1A)   Subsection   (2) applies only to the extent necessary for the purposes of subsection   701 - 55(6) to determine whether a provision of this Act is to apply in relation to each of those assets on and after the joining time.

  (1B)   Subsection   (2) applies despite section   701 - 5 (the entry history rule).

  (2)   Treat the * head company as having acquired each of those assets at the joining time as part of acquiring the business of the joining entity as a going concern.

Certain depreciating assets etc.

  (3)   Subsection   701 - 55(6) does not apply in relation to an asset if any of the following provisions are to apply in relation to the asset:

  (a)   Subdivision   40 - F (Primary production depreciating assets);

  (b)   Subdivision   40 - G (Capital expenditure of primary producers and other landholders);

  (c)   Subdivision   40 - H (Capital expenditure that is immediately deductible);

  (d)   Subdivision   40 - I (Capital expenditure that is deductible over time);

  (e)   Subdivision   40 - J (Capital expenditure for the establishment of trees in carbon sink forests);

  (f)   Division   41 (Additional deduction for certain new business investment);

  (g)   Division   43 (Deductions for capital works).