Commonwealth Consolidated Acts Commonwealth Consolidated ActsReduction for future deduction
(1) If some or all of an accounting liability will result in a deduction to the * head company, the amount to be added for the accounting liability under subsection 705‑70(1) is reduced by the following amount:
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where:
"double-counting adjustment" means the amount of any reduction that has already occurred in the accounting liability under subsection 705-70(1) to take account of the future availability of the deduction.
Reduction for intra‑group liabilities
(2) If the amount of an accounting liability of the joining entity that is owed to a * member of the joined group is more than the amount applicable under the following table, the amount to be added for the accounting liability under subsection 705‑70(1) instead equals the amount applicable under the table.
| Amount applicable | ||
| Item | If the market value of the member’s asset constituted by the accounting liability is... | The amount applicable is... |
| 1 | equal to or greater than the asset’s * cost base | the asset’s cost base |
| 2 | less than the asset’s * cost base but greater than its * reduced cost base | the asset’s * market value |
| 3 | less than or equal to the asset’s * reduced cost base | the asset’s reduced cost base |
Application of subsections 705‑65(2) and (4)
(3) Subsections 705‑65(2) and (4) apply in relation to references in subsection (2) of this section to an asset’s * cost base or * reduced cost base in a corresponding way to that in which they apply in relation to references in the table in subsection 705‑65(1) to a * membership interest’s cost base or reduced cost base.