Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 5/6)
Character Range: 6141588–6144445

setting interests as if:
 (a) a partnership cost setting interest relating to that asset were a *retained cost base asset; and
 (b) the tax cost setting amount for that partnership cost setting interest were equal to its *terminating value (worked out in accordance with section 713‑215).

Partnership liabilities—working out allocable cost amount
 (6) If:
 (a) in accordance with the *accounting principles that the partnership would use if it were to prepare its financial statements just before the joining time, a thing (the partnership liability) is a liability of the partnership at the joining time; and
 (b) for that reason, the partnership liability is not an accounting liability of the joining entity at the joining time for the purposes of section 705‑70;
then sections 705‑70, 705‑75 and 705‑80 operate as if the partnership liability were an accounting liability of the joining entity at the joining time, to the extent of the joining entity's individual share of the partnership liability.

Partnership deductions—working out allocable cost amount
 (7) Section 705‑115 operates as if:
 (a) a deduction to which the partnership is entitled (the partnership deduction) were a deduction to which the joining entity was entitled, to the extent of the joining entity's individual share of the partnership deduction; and
 (b) the deduction to which the joining entity was entitled were of the same kind as the partnership deduction.
Note: These kinds of deductions include acquired deductions and owned deductions (within the meaning of section 705‑115).

Special rules where partnership joins consolidated group

713‑235  Partnership joins group—set tax cost of partnership assets
 (1) This section applies if a partnership becomes a *subsidiary member of a *consolidated group at a time (the joining time).
 (2) In applying the provisions mentioned in subsection 713‑205(3) in relation to the partnership:
 (a) do not work out an allocable cost amount for the partnership; and
 (b) work out the *tax cost setting amount for each asset of the partnership covered by subsection (3), in accordance with section 713‑240.
Note: If a partner in the partnership becomes a subsidiary member of the group at the joining time, tax cost setting amounts are worked out for the assets of the partner (including partnership cost setting interests) before tax cost setting amounts are worked out for the assets of the partnership.
 (3) An asset of the partnership at the joining time is covered by this subsection, unless it would be an excluded asset for the purposes of section 705‑35 on the assumption that tax cost setting amounts were worked out for the assets of the partnership under Division 705 (instead of section 713‑240).

713‑240  Partnership joins group—tax cost setting amount for partnership asset
 (1) Work out the *tax cost setting amounts for