INCOME TAX ASSESSMENT ACT 1997 - SECT 716.345 Head company taken not to have incurred expenditure
INCOME TAX ASSESSMENT ACT 1997 - SECT 716.345
Head company taken not to have incurred expenditure(1) This section has effect if:
(a) an entity (the leaving entity ) ceases to be a * subsidiary member of a * consolidated group at a time in an income year (the leaving year ); and
(b) under section 701 - 40 (Exit history rule), expenditure is taken to have been allocated by the leaving entity to a software development pool.
Note: Section 701 - 40 treats expenditure incurred by the head company of the consolidated group and allocated by that company to a software development pool as having been incurred by the leaving entity and allocated by it to a software development pool.
(2) Work out deductions of the * head company of the * consolidated group for income years after the leaving year as if the head company had not incurred the expenditure.
(3) The leaving entity cannot deduct an amount for the leaving year for the expenditure it is taken to have allocated to the software development pool.
716 - 400 Tax cost setting and bad debts
716 - 440 Membership interests in joining entity not subject to CGT
under Division 855--foreign entity ceasing to hold interests