Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if:
(a) an entity (the joining entity ) becomes a * subsidiary member of a * consolidated group; and
(b) paragraph 701 - 55(5A)(b) applies in relation to one or more assets of the joining entity.
(2) Work out if the total of the * Division 230 starting values for those assets exceeds or falls short of the total of their * tax cost setting amounts.
(3) If there is an excess, an amount equal to 25% of that excess is included in the * head company's assessable income for:
(a) the income year in which the particular time mentioned in subsection 701 - 55(5A) occurs; and
(b) each of the 3 subsequent income years.
(4) If there is a shortfall, the * head company is entitled to a deduction equal to 25% of that shortfall for:
(a) the income year in which the particular time mentioned in subsection 701 - 55(5A) occurs; and
(b) each of the 3 subsequent income years.