Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 7/13)
Character Range: 6102579–6105306

subsection 711‑45(11));
 (c) a member of the old group transferred or equitably assigned one or more assets (the underlying securitised assets) to another entity before the leaving time;
 (d) the securitisation liability:
 (i) arose from the transfer or equitable assignment of the underlying securitised assets; and
 (ii) is a liability of the leaving entity at the leaving time (according to the leaving entity's *accounting principles for tax cost setting);
 (e) the other entity was established for the purpose of securitising assets;
 (f) the underlying securitised assets were securitised in accordance with that purpose before the leaving time;
 (g) at the leaving time the *market value of the leaving entity's interest in the underlying securitised assets is nil, or is substantially less than the amount of the securitisation liability.

711‑55  Tax cost setting amount for membership interests where multiple exit
 (1) If 2 or more entities cease to be *subsidiary members of the old group at the same time because of an event happening in relation to one of them, the *tax cost setting amount for each *membership interest mentioned in paragraphs 711‑10(a) and (b) is worked out in accordance with this section.

Object
 (2) The object of this section is to ensure that the *tax cost setting amount for *membership interests that each entity holds in another entity reflects a proportion of the other entity's cost for its net assets.

Tax cost setting amounts to be worked out for certain membership interests in all of the entities
 (3) A *tax cost setting amount must be worked out for each *membership interest (the subject interest) that one of the entities holds in another of the entities just before the leaving time, and this must be done:
 (a) by applying section 711‑15 to the subject interest as if:
 (i) a reference in that section, or any provision of this Division that relates to it, to any membership interest that *members of the old group hold in the leaving entity were a reference to the subject interest; and
 (ii) a reference in that section, or any provision of this Division that relates to it, to liabilities owed by members of the old group included a reference to liabilities owed by any of the entities that cease to be *subsidiary members of the old group at the leaving time; and
 (b) by working out the tax cost setting amount for membership interests in entities that are held by other entities before working out the tax cost setting amount for membership interests in those other entities.

Tax cost setting amount for membership interests acquired by head company
 (4) Then work out the *tax cost setting amount mentioned in paragraph 711‑10(a) for the *membership interests held