Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:2_32:p2
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 2 cl 32 (pt 2/4)
Character Range: 107480–110236

in paragraph 711‑55(3)(a), a reference to *membership interests in an entity, or to the *tax cost setting amount for such interests, where the entity is the partnership, were a reference to *partnership cost setting interests in the partnership, or to the tax cost setting amount for such interests; and
 (b) paragraph 711‑55(3)(a) were replaced by a requirement that, where the entity in which the membership interests mentioned in subsection 711‑55(3) are held is the partnership, subsection (4) of this section is to be applied in working out the tax cost setting amount of the partnership cost setting interests in the partnership.

713‑260  Partnership leaves group—tax cost setting amount for assets consisting of being owed certain liabilities

 (1) This section applies if:
 (a) when the partnership ceases to be a *subsidiary member of the group, a partner remains a *member of the group; and
 (b) an asset becomes an asset of the *head company because subsection 701‑1(1) (the single entity rule) ceases to apply to the partnership when it ceases to be a subsidiary member; and
 (c) the asset is, ignoring that subsection:
 (i) the partner's interest in an asset of the partnership consisting of a liability of a member of the group owed to the partnership; or
 (ii) the partner's share of a liability of the partnership owed to a member of the group.

 (2) The asset's *tax cost is set at the leaving time at a *tax cost setting amount equal to the *market value of the asset.

713‑265  Partnership leaves group—adjustments to leaving partner's allocable cost amount

 (1) This section has effect in working out the group's *allocable cost amount for a partner in the partnership, if the partner ceases to be a *subsidiary member of the group at the leaving time.

 (2) Section 711‑35 operates as if:
 (a) a deduction to which the partnership becomes entitled (the partnership deduction) were a deduction to which the partner becomes entitled, to the extent of the partner's individual share of the partnership deduction; and
 (b) the deduction to which the partner becomes entitled were of the same kind as the partnership deduction.

Note: These kinds of deductions include acquired deductions and owned deductions (within the meaning of section 711‑35).

 (3) Section 711‑40 operates as if a liability owed by *members of the group to the partnership at the leaving time were a liability owed by members of the group to the partner at that time, to the extent of the partner's individual share of the liability.

 (4) If:
 (a) according to *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board, a thing (the partnership liability) is a liability of the partnership at the leaving time