Document ID: chunk:federal_register_of_legislation:C2020C00139:clause:2_6
Version: federal_register_of_legislation:C2020C00139
Segment Type: clause
Provision Reference: sch 2 cl 6
Character Range: 14064–15032

6  At the end of section 705‑45 (after the notes)
Add:
 (2) If:
 (a) an asset of the joining entity is a *depreciating asset to which Division 40 applies; and
 (b) either of the following has applied before the joining entity became a *subsidiary member for the purposes of working out the asset's decline in value under Division 40:
 (i) section 40‑82;
 (ii) Subdivision 40‑BA of the Income Tax (Transitional Provisions) Act 1997; and
 (c) the asset's *tax cost setting amount would be greater than the joining entity's *terminating value for the asset;
the asset's tax cost setting amount is reduced so that it equals the terminating value.
Note 1: The provisions referred to in paragraph (b) provide for an accelerated decline in value of certain assets.
Note 2: Unlike the position with a reduction in tax cost setting amount under section 705‑40, the amount of the reduction is not re‑allocated among other assets.

Income Tax (Transitional Provisions) Act 1997