• Specific Year
    Any

INCOME TAX ASSESSMENT ACT 1997 - SECT 719.755 Effect on MEC group cost setting rules if head company is losing entity or gaining entity for indirect value shift

INCOME TAX ASSESSMENT ACT 1997 - SECT 719.755

Effect on MEC group cost setting rules if head company is losing entity or gaining entity for indirect value shift

  (1)   This section has effect for the purposes of working out the consequences (if any) of an * indirect value shift if the * losing entity or * gaining entity is the * head company of a * MEC group. (Subsection   (3) has effect in addition to section   727 - 455.)

  (2)   An * equity or loan interest can be an * affected interest in the * head company only if it is:

  (a)   an * equity or loan interest in the * top company for the MEC group; or

  (b)   an * indirect equity or loan interest in the top company.

  (3)   Subdivision   719 - K (MEC group cost setting rules: pooling cases) applies to the * MEC group, in relation to the first time referred to in that Subdivision as a trigger time that happens at or after the * IVS time, on the basis that:

  (a)   what would, apart from this section, be the pooled cost amount for the purposes of the formulas in subsections   719 - 570(1) and (2) is:

  (i)   if the * head company is the * losing entity--reduced; or

  (ii)   if the head company is the gaining entity--increased;

    by the amount of the indirect value shift; and

  (b)   paragraph   (a) of this subsection also affects the application of those formulas because of subsection   719 - 570(3) (to work out the * reduced cost base of a * membership interest).

Download

No downloadable files available