Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 10/20)
Character Range: 6244238–6246970

whoever actually did); and
 (c) those membership interests remained the same; and
 (d) the head company directly controlled the voting power in the leaving entity.

Subdivision 715‑D—Treatment of company's deferred losses under Subdivision 170‑D on joining a consolidated group

Table of sections

Key terminology
715‑310 What is a 170‑D deferred loss, and when it revives

Deferred loss on 165‑CC tagged asset
715‑355 Head company's own deferred losses at formation time
715‑360 Deferred losses brought in by subsidiary member
715‑365 How loss denial balance is applied when 170‑D deferred loss revives

Key terminology

715‑310  What is a 170‑D deferred loss, and when it revives
 (1) A *capital loss, deduction, or partner's share of a deduction, that section 170‑270 (about transactions within linked groups) requires to be disregarded is a 170‑D deferred loss made:
 (a) by the company that paragraph 170‑255(1)(a) refers to as the originating company; and
 (b) at the time of the event that paragraph refers to as the deferral event; and
 (c) on the *CGT asset *acquired by the other entity referred to in that paragraph.
 (2) The *170‑D deferred loss revives at the time when section 170‑275 (as applying in relation to the deferral event) treats the originating company as having made a *capital loss, or having become entitled to a deduction, in respect of that asset.

Deferred loss on 165‑CC tagged asset

715‑355  Head company's own deferred losses at formation time
 (1) This section applies if, at the time (the formation time) when a *consolidated group comes into existence, the *head company has (otherwise than because of section 701‑5 (Entry history rule)) a *170‑D deferred loss that:
 (a) it made on a *CGT asset that is a *165‑CC tagged asset of the head company because of paragraph 165‑115A(1A)(b) (which covers CGT assets on which it has 170‑D deferred losses); and
 (b) has not *revived.
 (2) If a *loss denial pool of the *head company is created under section 715‑60 at the formation time, each *170‑D deferred loss of that kind that the head company has at that time is added to the loss denial pool at that time.
 (3) Otherwise, a loss denial pool of the *head company is created at the formation time if:
 (a) the formation time is not a *changeover time for the head company; and
 (b) the head company's *final RUNL just before the formation time (as reduced by any reductions under section 715‑50 or 715‑55) was greater than nil; and
 (c) the head company does not satisfy the *business continuity test for:
 (i) the period (the business continuity test period) consisting of the head company's *trial year; and
 (ii) the time (the test time) just before the *changeover time.
Note: Paragraph (3)(b)