Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) At the time (the formation time ) when a * consolidated group comes into existence under paragraph 703 - 5(1)(a), a loss denial pool of the * head company is created if:
(a) the formation time is not a * changeover time for the head company; and
(b) at the formation time, the head company owns a * CGT asset:
(i) that is a * 165 - CC tagged asset of the head company at that time; and
(ii) that it owned at the * changeover time; and
(iii) that is not a * membership interest in a * member of the group; and
(iv) that is not a right or option (including a contingent right or option), created or issued by a member of the group, to acquire such a membership interest; and
(v) that is not constituted by a liability owed to the head company by a member of the group;
or 2 or more such assets; and
(c) 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
(d) 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 (1)(c) 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.
(2) When it is created, the pool consists of the one or more * CGT assets referred to in paragraph (1)(b), and its loss denial balance is equal to the * final RUNL referred to in paragraph (1)(c).
Note 1: 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 - 70.
Note 2: 170 - D deferred losses on 165 - CC tagged assets of the head company may be added to the pool by subsection 715 - 355(1).