Document ID: chunk:federal_register_of_legislation:C2010C00610:clause:2_13
Version: federal_register_of_legislation:C2010C00610
Segment Type: clause
Provision Reference: sch 2 cl 13
Character Range: 13773–14869

13  Subsection 701‑30(3)
Repeal the subsection, substitute:

Creation of, or increase in, tax deferral amount

 (3) For the purposes of applying section 705‑50 (reduction in tax cost setting amount for over‑depreciated assets) of the Income Tax Assessment Act 1997 in relation to an asset of the transitional entity that becomes that of the head company under subsection 701‑1(1) of that Act when the transitional group comes into existence:
 (a) if, before the transitional group came into existence, the transitional entity paid any dividends to which paragraph 705‑50(2)(b) of that Act applies—the tax deferral amount in relation to the dividends under subsection 705‑50(3) of that Act is increased by the amount worked out under subsection (4) of this section; and
 (b) if paragraph (a) does not apply—the transitional entity is taken to have paid dividends to which paragraph 705‑50(2)(b) of that Act applies and there is taken to be a tax deferral amount in relation to the dividends under subsection 705‑50(3) of that Act whose amount is worked out under subsection (4) of this section.