Document ID: chunk:federal_register_of_legislation:C2018A00014:clause:1_24:p1
Version: federal_register_of_legislation:C2018A00014
Segment Type: clause
Provision Reference: sch 1 cl 24 (pt 1/2)
Character Range: 22227–25050

24  After section 715‑378
Insert:

715‑379  Cost setting on leaving—amount of intragroup liability that is Division 230 financial arrangement
 (1) Subsection (2) applies if:
 (a) an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) a thing (the accounting liability) is, in accordance with *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board:
 (i) a liability of the leaving entity at the leaving time that can or must be recognised in the entity's statement of financial position; or
 (ii) a liability of the *head company of the group at the leaving time that can or must be recognised in the head company's statement of financial position; and
 (c) because subsection 701‑1(1) (the single entity rule) ceases to apply to the leaving entity at the leaving time:
 (i) if subparagraph (b)(i) applies—the accounting liability becomes a liability of the leaving entity, and an asset (the corresponding asset) that consists of the liability becomes an asset of the head company; or
 (ii) if subparagraph (b)(ii) applies—the accounting liability becomes a liability of the head company, and an asset (the corresponding asset) that consists of the liability becomes an asset of the leaving entity; and
 (d) the corresponding asset's *tax cost is set at the leaving time under:
 (i) if subparagraph (b)(i) applies—section 701‑20; or
 (ii) if subparagraph (b)(ii) applies—section 701‑45; and
 (e) the accounting liability is or is part of a *Division 230 financial arrangement.
 (2) For the purposes of Division 230 of this Act and Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009:
 (a) if subparagraph (1)(b)(i) applies—treat the leaving entity as starting to have the accounting liability at the leaving time for receiving a payment equal to the *tax cost setting amount of the corresponding asset; or
 (b) if subparagraph (1)(b)(ii) applies—treat the *head company as starting to have the accounting liability at the leaving time for receiving a payment equal to the tax cost setting amount of the corresponding asset.
Note: The tax cost setting amount of the corresponding asset is determined under sections 701‑60 and 701‑60A.

715‑379A  Cost setting on leaving—head company's or leaving entity's right to receive or obligation to provide payment
 (1) This section applies in relation to an asset or a liability if:
 (a) an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) because subsection 701‑1(1) (the single entity rule) ceases to apply to the leaving entity at the leaving time, the asset or liability becomes the asset or liability of:
 (i) the leaving entity; or
 (ii) the