Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_6:p7
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 6 (pt 7/14)
Character Range: 148502–151281

by the adjustment amount under section 165‑115ZB, which is calculated on the basis that:
 (a) just before the leaving time, all the *membership interests in the leaving entity constituted a single relevant equity interest under section 165‑115X that the head company had in the leaving entity; and
 (b) the adjustment amount is worked out and applied in accordance with subsection 165‑115ZB(6), but disregarding the paragraphs of that subsection except paragraphs 165‑115ZB(6)(a) and (d).

 (4) The *head company's choice must be made within 6 months after the leaving time, or within a further period allowed by the Commissioner.

 (5) After that 6 months, or that further period, the head company is taken to have chosen subsection (2) unless it is established that the head company made a different choice within that 6 months or further period.

Rights and options to acquire membership interests

 (6) Subsection 711‑15(2) (which treats rights and options as membership interests) also applies for the purposes of this section, on the basis that the *consolidated group referred to in section 715‑240 is the old group referred to in that subsection.

715‑260  If neither of sections 715‑245 and 715‑250 applies

 (1) This section applies if:
 (a) no *alteration time has occurred in relation to the *head company of the *consolidated group since the formation time and before the leaving time; and
 (b) the leaving time is not an *alteration time for the leaving entity under subsection 715‑245(2).

 (2) The leaving entity's first *alteration time after the leaving time is determined:
 (a) on the basis that the reference time under subsection 165‑115L(2) or 165‑115M(2) is the time just after the formation time; and
 (b) making the additional assumptions in section 715‑290.

 (3) If the leaving entity uses the *individual asset method of working out its *adjusted unrealised loss at that first *alteration time, then for the purposes of:
 (a) step 1 of the method statement in subsection 165‑115U(1); and
 (b) the method statement in subsection 165‑115W(1);
the leaving entity is taken to have had no earlier alteration time.

[The next section is section 715‑270.]

How Subdivision 165‑CD applies to leaving entity that is a trust

715‑270  Subdivision 165‑CD applies

 (1) At and after the time (the leaving time) when a trust ceases to be a *subsidiary member of a *consolidated group, Subdivision 165‑CD (about reductions after alterations in ownership or control of loss company) applies to the trust on the basis set out in this section.

 (2) The trust is taken to be a company.

 (3) The leaving time is the only alteration time in respect of the trust.

 (4) The trust is a loss company at that time if, and only if, it has an *adjusted unrealised loss at