Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 3/5)
Character Range: 5904262–5906993

taken into account in working out the first element of the cost base or reduced cost base of the membership interest;
Note: This would be the case if the money was only to be paid etc. if a contingency happened after the joining time.
the thing is nevertheless so taken into account, and taken always to have been so taken into account.

Non‑membership equity interests
 (6) For the purposes of this section, if at the joining time a *member of the joined group holds a *non‑membership equity interest in the joining entity, that non‑membership equity interest is treated as if it were a *membership interest in the joining entity.

705‑70  Liabilities of the joining entity—step 2 in working out allocable cost amount
 (1) For the purposes of step 2 in the table in section 705‑60, the step 2 amount is worked out by adding up the amounts of each thing (an accounting liability) that, in accordance with the joining entity's *accounting principles for tax cost setting, is a liability of the joining entity at the joining time.
Note: Certain liabilities of a life insurance company are worked out under Subdivision 713‑L: see section 713‑520.

Exclusion for deferred tax liability
 (1B) An amount is not to be added for an accounting liability that is an amount recorded in a deferred tax liability account in accordance with the joining entity's *accounting principles for tax cost setting.
 (1C) Subsection (1B) does not apply to an accounting liability that relates to an asset mentioned in paragraph 713‑515(1)(a) or (b) (certain assets of life insurance company).

Exclusion for deductible liability
 (1AA) Subsection (1AB) applies if:
 (a) the accounting liability is covered by subsection (1AC); and
 (b) assuming that the *head company had made a payment to discharge the accounting liability to the extent that it is covered under that subsection just after the joining time, that payment would result in an amount equal to all or part of the accounting liability being a deduction to the head company of the group.
 (1AB) An amount is not to be added for the accounting liability under subsection (1) to the extent of that deduction.
 (1AC) A liability is covered by this subsection except to the extent that:
 (a) any of the following provisions apply in relation to the liability:
 (i) section 713‑520 (certain liabilities etc. of life insurance company that joins a consolidated group);
 (ii) section 715‑375 (accounting liabilities that are, or are part of, a Division 230 financial arrangement held by an entity that joins a consolidated group); or
 (b) section 713‑515 (certain assets taken to be retained cost base assets where life insurance company joins a consolidated group) applies in relation to an asset to