Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:4_1:p2
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 4 cl 1 (pt 2/6)
Character Range: 22375–25186

partnership are ignored.

 (3) The provisions are:
 (a) section 701‑10 (about setting the tax cost of assets that an entity brings into the group); and
 (b) Subdivision 705‑A; and
 (c) any other provision of this Act giving Subdivision 705‑A a modified effect in circumstances other than those covered by that Subdivision.

Note: An example of provisions covered by paragraph (c) are the provisions of Subdivision 705‑B giving Subdivision 705‑A a modified effect when a consolidated group is formed.

Partnership cost setting interests etc.

713‑210  Partnership cost setting interests

  A partnership cost setting interest in a partnership is the asset that is comprised of:
 (a) an interest in an asset of the partnership; or
 (b) an interest in the partnership that is not covered by paragraph (a);
but does not include an asset that is comprised of a *membership interest in the partnership.

Note 1: A partner may have more than one partnership cost setting interest that relates to an asset of the partnership (see section 106‑5).

Note 2: A partnership cost setting interest may relate to an asset of the partnership, but the asset of the partnership is not a partnership cost setting interest in the partnership.

713‑215  Terminating value for partnership cost setting interest

 (1) This section modifies the way in which the *terminating value of a *partnership cost setting interest in a partnership is worked out under section 705‑30.

 (2) For the purposes of this Subdivision, the *terminating value of the *partnership cost setting interest at a time is:
 (a) if the interest relates to an asset of the partnership—the interest's individual share of the terminating value of that asset (worked out in accordance with subsection (3)) at that time; or
 (b) otherwise—the terminating value of the interest at that time worked out under section 705‑30.

 (3) To work out the amount of the *terminating value of the asset of the partnership mentioned in paragraph (2)(a), apply section 705‑30 as if:
 (a) the time mentioned in subsection (2) were the joining time mentioned in that section; and
 (b) the partnership were, at the time mentioned in subsection (2), the joining entity mentioned in that section.

Setting tax cost of partnership cost setting interests

713‑220  Set tax cost of partnership cost setting interests if partner joins consolidated group

 (1) This section applies if an entity (the joining entity) that is a partner in a partnership becomes a *subsidiary member of a *consolidated group at a time (the joining time).

Note: If the partnership becomes a subsidiary member of the group at the joining time, the application of this section is affected by section 713‑235.

 (2) In applying the provisions mentioned in subsection 713‑205(3) in relation to the joining entity: