Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if, at the time (the formation time ) when a * consolidated group comes into existence, the * head company has (otherwise than because of section 701 - 5 (Entry history rule)) a * 170 - D deferred loss that:
(a) it made on a * CGT asset that is a * 165 - CC tagged asset of the head company because of paragraph 165 - 115A(1A)(b) (which covers CGT assets on which it has 170 - D deferred losses); and
(b) has not * revived.
(2) If a * loss denial pool of the * head company is created under section 715 - 60 at the formation time, each * 170 - D deferred loss of that kind that the head company has at that time is added to the loss denial pool at that time.
(3) Otherwise, a loss denial pool of the * head company is created at the formation time if:
(a) the formation time is not a * changeover time for the head company; and
(b) the head company's * final RUNL just before the formation time (as reduced by any reductions under section 715 - 50 or 715 - 55) was greater than nil; and
(c) the head company does not satisfy the * business continuity test for:
(i) the period (the business continuity test period ) consisting of the head company's * trial year; and
(ii) the time (the test time ) just before the * changeover time.
Note: Paragraph (3)(b) has the effect that if the head company has 165 - CC tagged assets that are affected by section 715 - 50 or 715 - 55 (because they are membership interests in, or accounting liabilities owed by, another group member), those sections are applied before this section.
(4) When it is created because of subsection (3), the pool consists of each * 170 - D deferred loss covered by subsection (2), and its loss denial balance is equal to the * final RUNL referred to in paragraph (3)(b).
Note: The pool is distinct from any other loss denial pool of the head company, for example, one created at the formation time under section 715 - 360.