INCOME TAX ASSESSMENT ACT 1997 - SECT 715.185 Leaving entity may choose to cancel loss denial pool by reducing adjustable values of assets in the pool

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.185

  (1)   Within 6 months after a * loss denial pool is created under section   715 - 110 or 715 - 135, or within a further period allowed by the Commissioner, the leaving entity may choose to be treated as if the * head company had instead made:

  (a)   the first choice under section   715 - 100 or 715 - 125; or

  (b)   the second choice under section   715 - 105 or 715 - 130;

as specified by the leaving entity in its choice.

  (2)   If the leaving entity makes a choice under subsection   (1):

  (a)   the * loss denial pool ceases to exist just after the leaving time; and

  (b)   at the leaving time, the * adjustable value of each * CGT asset in the pool is reduced to what it would have been at that time if the head company had instead made the choice specified by the leaving entity in its choice.

  (3)   The choice by the leaving entity does not affect how subsection   715 - 135(4) applies to the * head company.

Note:   This means that the head company's loss denial pool still ceases to exist.

Table of sections

How Subdivision   165 - CD applies to consolidated groups

715 - 215   Extension of single entity rule and entry history rule

715 - 225   Working out adjusted unrealised loss using individual asset method

715 - 230   No reductions or other consequences for interests subject to loss cancellation under Subdivision   715 - H

How Subdivision   165 - CD applies to leaving entity that is a company

715 - 240   Application of sections   715 - 245 to 715 - 260

715 - 245   If ownership or control of leaving entity has altered since head company's last alteration time or formation of group

715 - 250   If head company has had an alteration time but ownership and control of leaving entity have not altered since

715 - 255   Consequences if leaving entity is a loss company at the leaving time

715 - 260   If neither of sections   715 - 245 and 715 - 250 applies

715 - 265   Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest

How Subdivision   165 - CD applies to leaving entity that is a trust

715 - 270   Subdivision   165 - CD applies