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INCOME TAX ASSESSMENT ACT 1997 - SECT 715.378 Cost setting on joining--head company's right to receive or obligation to provide payment

INCOME TAX ASSESSMENT ACT 1997 - SECT 715.378

Cost setting on joining--head company's right to receive or obligation to provide payment

  (1)   This section applies in relation to an asset or a liability if:

  (a)   an entity (the joining entity ) becomes a subsidiary member of a consolidated group at a time (the joining time ); and

  (b)   the asset or liability becomes that of the head company of the group because subsection   701 - 1(1) (the single entity rule) applies at the joining time; and

  (c)   in the case of an asset--subsection   701 - 55(5A) applies in relation to the asset at the joining time; and

  (d)   in the case of a liability--subsection   715 - 375(2) applies in relation to the liability at the joining time.

  (2)   In the case of an asset, for the purposes of section   230 - 60, assume that the * head company of the group acquired the asset at the joining time (as mentioned in subsection   701 - 55(5A)) in return for the head company starting to have an obligation to provide the payment mentioned in that subsection.

  (3)   In the case of a liability, for the purposes of section   230 - 60, assume that the * head company of the group started to have the liability at the joining time (as mentioned in subsection   715 - 375(2)) in return for the head company starting to have a right to receive the payment mentioned in that subsection.

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