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INCOME TAX ASSESSMENT ACT 1997 - SECT 705.62 No double counting of amounts in allocable cost amount

INCOME TAX ASSESSMENT ACT 1997 - SECT 705.62

No double counting of amounts in allocable cost amount

  (1)   The object of this section is to prevent a particular amount from being taken into account more than once in calculating the * allocable cost amount for the joining entity, in order to promote the object of this Subdivision set out in section   705 - 10.

  (2)   Subsection   (3) applies if, apart from this section, 2 or more provisions of this Act operate with the result of altering:

  (a)   the * allocable cost amount for the joining entity; or

  (b)   the allocable cost amount for another entity that becomes a * subsidiary member of the group at the joining time;

because of a particular economic attribute of the joining entity (see subsection   (6)).

  (3)   Only one of those alterations is to be made, as follows:

  (a)   if the * head company of the group makes a choice in accordance with subsections   (4) and (5)--the alteration specified in the choice is to be made;

  (b)   otherwise--the alteration that is most appropriate (in the light of the object of this Subdivision) is to be made.

  (4)   A choice mentioned in paragraph   (3)(a) must be made:

  (a)   by the day the * head company of the group lodges its * income tax return for the income year in which the joining time occurs; or

  (b)   within a further time allowed by the Commissioner.

  (5)   A choice mentioned in paragraph   (3)(a) must be made in writing.

  (6)   The economic attributes of the joining entity mentioned in subsection   (2) include the following:

  (a)   the joining entity's retained profits;

  (b)   the joining entity's distributions of profits to other entities;

  (c)   the joining entity's realised and unrealised losses;

  (d)   the joining entity's deductions;

  (e)   the joining entity's accounting liabilities (within the meaning of subsection   705 - 70(1));

  (f)   consideration received by the joining entity for issuing * membership interests in itself.

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