Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If an entity (the joining entity ) to which section 40 - 75 of this Act applied becomes a subsidiary member of a consolidated group at a time (the joining time ), this Subdivision applies in relation to:
(a) depreciating assets that:
(i) caused section 40 - 75 of this Act to apply to the joining entity; and
(ii) became assets of the head company of the group at the joining time because of section 701 - 1 (Single entity rule) of the Income Tax Assessment Act 1997 operating in relation to the joining entity; and
(b) notional assets that sections 40 - 35, 40 - 37, 40 - 40 and 40 - 43 of this Act treat an entity as holding because of expenditure relating to such depreciating assets;
to affect the operation of Division 40, section 701 - 55 and Division 705 of that Act.
(2) The main object of this Subdivision is to ensure that entities are allowed only an appropriate amount of deductions in connection with such depreciating assets and such expenditure.