Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 11/13)
Character Range: 6112456–6115206

in determining whether the property mentioned in subsection 104‑230(2) for the leaving entity was acquired on or after 20 September 1985.
Note 2: However, in a case of multiple exit from a consolidated group (see section 711‑55), the property mentioned in subsection 104‑230(2) for the leaving entity may include membership interests in another entity leaving the group at the leaving time. To determine which of those membership interests were acquired on or after 20 September 1985 for the purposes of applying subsection 104‑230(2) to the leaving entity, see section 711‑65.
 (3) In determining the sum of the *cost bases of the property mentioned in subsection 104‑230(6), treat the cost base of an asset that is included in that property as:
 (a) if the asset has its *tax cost set at the leaving time under section 701‑50—its *tax cost setting amount; or
 (b) if the *terminating value of the asset is taken into account in working out the step 1 amount under section 711‑25 for the leaving entity—that terminating value; or
 (c) if the asset is taken into account in working out the step 3 amount under section 711‑40 for the leaving entity—the value of the asset that is so taken into account.

Division 713—Rules for particular kinds of entities

Table of Subdivisions
713‑A Trusts
713‑C Some unit trusts treated like head companies of consolidated groups
713‑E Partnerships
713‑L Life insurance companies
713‑M General insurance companies

Subdivision 713‑A—Trusts

Table of sections

Working out a joined group's allocable cost amount for a joining trust
713‑20 Increasing the step 1 amount for settled capital that could be distributed tax free in respect of discretionary interests
713‑25 Undistributed, realised profits that accrue to joined group before joining time and could be distributed tax free—step 3 in working out allocable cost amount

Determining destination of distribution by non‑fixed trust
713‑50 Factors to consider

Working out a joined group's allocable cost amount for a joining trust

713‑20  Increasing the step 1 amount for settled capital that could be distributed tax free in respect of discretionary interests
 (1) The object of this section is to increase the step 1 amount worked out under section 705‑65 (for the purpose of working out the joined group's allocable cost amount) if:
 (a) the joining entity is a trust; and
 (b) some or all of the *membership interests in the trust are neither units nor interests in the trust; and
 (c) some or all of the trust capital is settled capital that could be distributed tax free at the joining time.
The increase in the step 1 amount takes account of the settled capital that could be distributed tax free.
Note 1: As a result, the settled capital that could be