Commonwealth Consolidated Acts Commonwealth Consolidated ActsObject
(1) The object of this section is to ensure that, in working out the group's * allocable cost amount for the linked entities, the reduction under step 4 in the table in section 705 - 60 (about pre - formation time distributions out of certain profits) is made only for profits that have been effectively distributed to the * head company in respect of its direct * membership interests in the entities. This ensures consistency with the ordering rule in section 705 - 225.
When section applies
(2) This section applies to a distribution to the extent that the following conditions are satisfied:
(a) the distribution is made by a linked entity;
(b) in working out the group's * allocable cost amount for the linked entity there would, apart from this section, be a reduction under step 4 in the table in section 705 - 60 for the distribution.
Step 4 reduction only if subject distribution is made to head company
(3) There is no reduction as mentioned in subsection (2) for the distribution unless it is made to the * head company of the group.