Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 705.175

Application

  (1)   This Subdivision applies if all of the * members of a * consolidated group (the acquired group ) become members of another consolidated group (the acquiring group ) at a particular time (the acquisition time ) as a result of the * acquisition of * membership interests in the * head company of the acquired group.

Object

  (2)   The object of this Subdivision is:

  (a)   to modify the rules in Division   701 (the core rules) to complement the treatment of the acquired group as a single entity that applied before the acquisition time; and

  (b)   to modify Subdivision   705 - A (which basically determines the tax cost setting amount for assets of an entity joining a consolidated group) to ensure that the * tax cost setting amount for assets of the acquired group that become those of the acquiring group reflects the cost to the latter group of acquiring the former.