Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Within 6 months after a * loss denial pool is created under section 715 - 110 or 715 - 135, or within a further period allowed by the Commissioner, the leaving entity may choose to be treated as if the * head company had instead made:
(a) the first choice under section 715 - 100 or 715 - 125; or
(b) the second choice under section 715 - 105 or 715 - 130;
as specified by the leaving entity in its choice.
(2) If the leaving entity makes a choice under subsection (1):
(a) the * loss denial pool ceases to exist just after the leaving time; and
(b) at the leaving time, the * adjustable value of each * CGT asset in the pool is reduced to what it would have been at that time if the head company had instead made the choice specified by the leaving entity in its choice.
(3) The choice by the leaving entity does not affect how subsection 715 - 135(4) applies to the * head company.
Note: This means that the head company's loss denial pool still ceases to exist.
Table of sections
How Subdivision 165 - CD applies to consolidated groups
715 - 215 Extension of single entity rule and entry history rule
715 - 225 Working out adjusted unrealised loss using individual asset method
715 - 230 No reductions or other consequences for interests subject to loss cancellation under Subdivision 715 - H
How Subdivision 165 - CD applies to leaving entity that is a company
715 - 240 Application of sections 715 - 245 to 715 - 260
715 - 245 If ownership or control of leaving entity has altered since head company's last alteration time or formation of group
715 - 250 If head company has had an alteration time but ownership and control of leaving entity have not altered since
715 - 255 Consequences if leaving entity is a loss company at the leaving time
715 - 260 If neither of sections 715 - 245 and 715 - 250 applies
715 - 265 Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest
How Subdivision 165 - CD applies to leaving entity that is a trust
715 - 270 Subdivision 165 - CD applies