Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 716.860

  (1)   This section applies if:

  (a)   an entity (the joining entity ) becomes a subsidiary member of a * consolidated group at a particular time (the joining time ); and

  (b)   disregarding the operation of subsection   701 - 1(1) (the single entity rule), the joining entity held a * CGT asset at the joining time; and

  (c)   taking into account the operation of subsection   701 - 1(1) (the single entity rule), the * head company of the group held the CGT asset at the joining time; and

  (d)   a * CGT event happened in relation to the asset at a time before the joining time (disregarding this section), but the circumstances that gave rise to the CGT event first existed at a time on or after the joining time.

  (2)   This section also applies if:

  (a)   an entity (the leaving entity ) ceases to be a * subsidiary member of a * consolidated group at a particular time (the leaving time ); and

  (b)   taking into account the operation of subsection   701 - 1(1) (the single entity rule), the * head company of the group held a * CGT asset at the leaving time; and

  (c)   disregarding the operation of subsection   701 - 1(1) (the single entity rule), the leaving entity held the CGT asset at the leaving time; and

  (d)   a * CGT event happened in relation to the asset at a time before the leaving time (disregarding this section), but the circumstances that gave rise to the CGT event first existed at a time on or after the leaving time.

  (3)   For the purposes of this Act, treat the * CGT event as happening at the time when the circumstances that gave rise to the CGT event first existed.

Table of Subdivisions

717 - A   Foreign income tax offsets

717 - D   Transfer of certain surpluses under CFC provisions and former FIF and FLP provisions: entry rules

717 - E   Transfer of certain surpluses under CFC provisions and former FIF and FLP provisions: exit rules

717 - O   Offshore banking units