Source: http://law.ato.gov.au/atolaw/view.htm?locid='PAC/19970038/701-55(5C)'&PiT=99991231235958
Timestamp: 2018-01-22 00:27:04
Document Index: 145125553

Matched Legal Cases: ['art 3', 'art 3', 'art 3', 'arts 1', 'art 1', 'art 11', 'art 1', 'arts 1']

Div 701 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997).
This section states the meaning of the expression an asset's tax cost is set at a particular time at the asset's *tax cost setting amount.
(c) where just before that time the prime cost method applied for working out the asset's decline in value and the asset's tax cost setting amount does not exceed the joining entity's *terminating value for the asset - at that time an *effective life were chosen for the asset equal to the remainder of the effective life of the asset just before that time; and
(d) where just before that time the prime cost method applied for working out the asset's decline in value and the asset's *tax cost setting amount exceeds the joining entity's terminating value for the asset - either:
(i) the *head company were required to choose at that time an effective life for the asset in accordance with subsections 40-95(1) and (3), and any choice of an effective life determined by the Commissioner were limited to one in force at that time; or
(ii) an effective life for the asset were worked out under subsection 40-95(7), (8), (9) or (10) at that time; and
(e) where neither paragraph (c) nor (d) applies - at that time an effective life were chosen for the asset equal to the asset's effective life just before that time.
(d) where just before that time the prime cost method applied for working out the asset's decline in value and the asset's *tax cost setting amount exceeds the joining entity's terminating value for the asset - the *head company were required to choose at that time an effective life for the asset in accordance with subsections 40-95(1) and (3) and any choice of an effective life determined by the Commissioner were limited to one in force at that time; and
S 701-55(2) amended by No 93 of 2011, s 3 and Sch 3 item 104, by substituting "Subdivisions 328-D and 355-E" for "Subdivision 328-D, and sections 73BA and 73BF of the Income Tax Assessment Act 1936,", effective 8 September 2011. For application, savings and transitional provisions see note under Div 355 heading.
If Division 70 (other than Subdivision 70-E) is to apply in relation to the asset, the expression means that the Division applies as if the asset were *trading stock at the start of the income year in which the particular time occurs and its *value at that time were equal to its *tax cost setting amount.
S 701-55(3) amended by No 56 of 2010, s 3 and Sch 5 item 2, by inserting "(other than Subdivision 70-E)" after "Division 70", applicable on and after 1 July 2002. For transitional provision see note under Subdiv 716-S.
If Division 420 is to apply in relation to the asset, the expression means that the Division applies as if the asset were a *registered emissions unit at the start of the income year in which the particular time occurs, and its *value at that time were equal to the asset's *tax cost setting amount.
If Division 16E of Part III of the Income Tax Assessment Act 1936 is to apply in relation to the asset, the expression means that the Division applies as if the asset were acquired at the particular time for a payment equal to the asset's *tax cost setting amount.
If Part 3-1 or 3-3 is to apply in relation to the asset, the expression means that the Part applies as if the asset's *cost base or *reduced cost base were increased or reduced so that the cost base or reduced cost base at the particular time equals the asset's *tax cost setting amount.
S 701-55(5) amended by No 58 of 2006, s 3 and Sch 7 item 95, by substituting "Part 3-1 or 3-3" for "Part 3.1 or 3.3", effective 22 June 2006.
(a) unless paragraph (b) applies - the asset's *tax cost setting amount; or
(b) if the asset's tax cost is set because an entity becomes a *subsidiary member of a *consolidated group, and Subdivision 230-C (fair value method), Subdivision 230-D (foreign exchange retranslation method) or Subdivision 230-F (reliance on financial reports method) is to apply in relation to the asset - the asset's *Division 230 starting value at the particular time.
S 701-55(5A) inserted by No 15 of 2009, s 3 and Sch 1 item 85, effective 26 March 2009. For application and transitional provisions see note under Div 230 heading.
To avoid doubt, for the purposes of paragraph (5A)(b), determine the asset's *Division 230 starting value by reference to the relevant standards (as mentioned in section 230-230, 230-280 or 230-420) that apply in relation to the *head company's financial report for the income year in which the entity becomes a subsidiary member of the group.
S 701-55(5B) inserted by No 15 of 2009, s 3 and Sch 1 item 85, effective 26 March 2009. For application and transitional provisions see note under Div 230 heading.
(a) the asset's tax cost is set because an entity becomes a *subsidiary member of a *consolidated group at the particular time; and
the expression means that section 25-95 applies as if the *head company had paid a *work in progress amount for the income year in which the particular time occurs equal to the *tax cost setting amount of the asset.
2010 Act means the Tax Laws Amendment (2010 Measures No. 1) Act 2010.interim rules means the amendments made by Parts 1 and 2 of this Schedule.original 2002 law means the Income Tax Assessment Act 1997 (disregarding amendments to that Act made by Division 1 of Part 1 and Division 2 of Part 11 of Schedule 5 to the 2010 Act and by this Schedule).original 2010 law means the Income Tax Assessment Act 1997 (as amended by the 2010 Act, but disregarding amendments made by this Schedule).pre rules means the amendments made by Part 1 of this Schedule.prospective rules means the amendments made by Parts 1, 2 and 3 of this Schedule.
(ii) the head company's latest notice of assessment, for the income year, that relates to the application of the original 2010 law in respect of the joining entity, was served on the head company by the Commissioner on or after 12 May 2010 and on or before 30 March 2011; or
(5) Despite subitems (2) and (3), the original 2002 law applies, for the income year in respect of the joining entity, if the head company's latest notice of assessment, for the income year, that relates to the application of subsection 701-55(6) of the original 2002 law in respect of the joining entity, was served on the head company by the Commissioner before 12 May 2010.
(3) However, if the head company requests an amendment of the assessment mentioned in item 50 after the issue of the ruling or the giving of the advice, this item does not apply to the extent that the request is inconsistent with or contrary to the ruling or advice.52 Commencement of arrangement
(a) a meeting or meetings of a company's members about the arrangement; or
(b) a meeting or meetings of one or more classes of a company's members about the arrangement;
(4) If subitem (2) or (3) does not apply, the time is when the decision to enter into the arrangement was made.53 No overpayments interest arises from pre rules
(c) the asset is not a *non-deductible right to future income in relation to the entity;
S 701-55(5C) and (6) and s 701-56 substituted for s 701-55(6) by No 56 of 2010, s 3 and Sch 5 item 3, applicable on and after 1 July 2002. For transitional provision see note under Subdiv 716-S.
the expression means that, for the purposes of section 8-1, the *head company of the group is taken to have incurred an outgoing at the particular time in acquiring the asset equal to the asset's *tax cost setting amount.
S 701-55(5D) inserted by No 99 of 2012, s 3 and Sch 3 item 1, effective 29 June 2012. For application provisions see note under s 701-55(5C).
S 701-55(6) amended by No 99 of 2012, s 3 and Sch 3 item 29, by repealing note 1, effective 29 June 2012. For application provisions see note under s 701-55(5C). Note 1 formerly read:
S 701-55(6) substituted by No 99 of 2012, s 3 and Sch 3 item 16, effective 29 June 2012. For application provisions see note under s 701-55(5C). S 701-55(6) formerly read:
701-55(6) If any provision of this Act that is not mentioned above is to apply in relation to the asset, the expression means that the provision applies as if the asset's cost at that time were equal to its *tax cost setting amount.
S 701-55(6) substituted by No 99 of 2012, s 3 and Sch 3 item 2, effective 29 June 2012. For application provisions see note under s 701-55(5C). S 701-55(6) formerly read:
S 701-55(6) substituted by No 56 of 2010, s 3 and Sch 5 item 3, applicable on and after 1 July 2002. For transitional provision see note under Subdiv 716-S. S 701-55(6) formerly read: