Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_6:p3
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 6 (pt 3/14)
Character Range: 138498–141276

Working out adjusted unrealised loss using individual asset method
715‑230 No reductions or other consequences for interests subject to loss cancellation under Subdivision 715‑H

How Subdivision 165‑CD applies to leaving entity that is a company

715‑240 Application of sections 715‑245 to 715‑260
715‑245 If ownership or control of leaving entity has altered since head company's last alteration time or formation of group
715‑250 If head company has had an alteration time but ownership and control of leaving entity have not altered since
715‑255 Consequences if leaving entity is a loss company at the leaving time
715‑260 If neither of sections 715‑245 and 715‑250 applies

How Subdivision 165‑CD applies to leaving entity that is a trust

715‑270 Subdivision 165‑CD applies

How Subdivision 165‑CD applies to consolidated groups

715‑215  Extension of single entity rule and entry history rule

 (1) Subsection 701‑1(1) (Single entity rule) and section 701‑5 (Entry history rule) also have effect for all the purposes of Subdivision 165‑CD (about reductions after alterations in ownership or control of loss company).

Note: One consequence of this is that the head company is the only member of a consolidated group that can have an alteration time and be subject to reductions or other consequences under Subdivision 165‑CD. The head company is treated as owning all CGT assets owned by group members, and as making relevant losses.

 Another consequence is for working out who has a relevant equity interest or relevant debt interest in a company that has an alteration time at which it is a loss company but not a member of a consolidated group. Interests in the loss company that are owned by subsidiary members of the group are treated as being owned by the head company.

 (2) This section is not intended to limit the effect that subsection 701‑1(1) and section 701‑5 have apart from this section.

[The next section is section 715‑225.]

715‑225  Working out adjusted unrealised loss using individual asset method

 (1) For the purposes of:
 (a) using the *individual asset method to work out whether the *head company of a *consolidated group has an adjusted unrealised loss under section 165‑115U at an *alteration time; or
 (b) working out under section 165‑115W whether the head company of a consolidated group has a trading stock decrease at an alteration time;
step 1 of the method statement in subsection 165‑115U(1), or step 2 of the method statement in subsection 165‑115W(1), does not apply to an amount that was counted in respect of a *CGT asset at an earlier time if:
 (c) at the time (the joining time) when an entity became a *subsidiary member of the group, the asset became an asset of the head company because of subsection 701‑1(1) (Single