INCOME TAX ASSESSMENT ACT 1997 - SECT 715.215 Extension of single entity rule and entry history rule

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.215

  (1)   Subsection   701 - 1(1) (Single entity rule) and section   701 - 5 (Entry history rule) also have effect for all the purposes of Subdivision   165 - CD (about reductions after alterations in ownership or control of loss company).

Note:   One consequence of this is that the head company is the only member of a consolidated group that can have an alteration time and be subject to reductions or other consequences under Subdivision   165 - CD. The head company is treated as owning all CGT assets owned by group members, and as making relevant losses.

  Another consequence is for working out who has a relevant equity interest or relevant debt interest in a company that has an alteration time at which it is a loss company but not a member of a consolidated group. Interests in the loss company that are owned by subsidiary members of the group are treated as being owned by the head company.

  (2)   This section is not intended to limit the effect that subsection   701 - 1(1) and section   701 - 5 have apart from this section.