Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 6/66)
Character Range: 6340632–6343330

a case covered by subparagraph (2)(c)(i)—the head company included an amount equal to the tax cost setting amount in its assessable income in respect of the debt; or
 (b) in a case covered by subparagraph (2)(c)(ii)—the head company lent an amount of money in respect of the debt equal to the tax cost setting amount in the ordinary course of a business of lending money; or
 (c) in a case covered by subparagraph (2)(c)(iii)—the head company incurred expenditure equal to the tax cost setting amount in buying the debt in the ordinary course of a business of lending money.

716‑440  Membership interests in joining entity not subject to CGT under Division 855—foreign entity ceasing to hold interests
 (1) Subsection (3) applies if:
 (a) an entity (the joining entity) becomes a *subsidiary member of a *consolidated group at a time (the joining time); and
 (b) another entity (the disposing entity) ceased to hold *membership interests in the joining entity during the period that:
 (i) started 12 months before the joining time; and
 (ii) ended immediately after the joining time; and
 (c) a *CGT event happened because the disposing entity ceased to hold the membership interests; and
 (d) either:
 (i) a *capital gain or *capital loss of the disposing entity from the CGT event was disregarded because of the operation of Division 855; or
 (ii) if there had been a capital gain or capital loss of the disposing entity from the CGT event, the capital gain or capital loss would have been disregarded because of the operation of Division 855; and
 (e) section 701‑10 (cost to head company of assets of joining entity) applies to the joining entity's assets in respect of the joining entity becoming a subsidiary member of the group (disregarding subsection (3) of this section); and
 (f) it is reasonable to conclude that, throughout the period mentioned in paragraph (b), the sum of the *total participation interests held by an entity (the control entity) and its *associates in the joining entity was 50% or more; and
 (g) in a case where the control entity is not the disposing entity—it is reasonable to conclude that the sum of the total participation interests held by the control entity and its associates in the disposing entity was 50% or more at the time the CGT event happened.
 (2) For the purposes of paragraphs (1)(f) and (g), in working out the sum of the *total participation interests held by the control entity and its *associates in another entity, take into account:
 (a) a particular *direct participation interest; or
 (b) a particular *indirect participation interest;
held in the other entity only once if it would otherwise be counted more than once because the entity