Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p82
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 82/95)
Character Range: 5759279–5761935

head company does not hold under the single entity rule
701‑60 Tax cost setting amount
701‑60A Tax cost setting amount for asset emerging when entity leaves group
701‑61 Assets in relation to Division 230 financial arrangement—head company's assessable income or deduction
701‑63 Right to future income and WIP amount asset
701‑65 Net income and losses for trusts and partnerships
701‑67 Assets in this Part are CGT assets, etc.

Exceptions
701‑70 Adjustments to taxable income where identities of parties to arrangement merge on joining group
701‑75 Adjustments to taxable income where identities of parties to arrangement re‑emerge on leaving group
701‑80 Accelerated depreciation
701‑85 Other exceptions etc. to the rules

Common rule

701‑1  Single entity rule
 (1) If an entity is a *subsidiary member of a *consolidated group for any period, it and any other subsidiary member of the group are taken for the purposes covered by subsections (2) and (3) to be parts of the *head company of the group, rather than separate entities, during that period.

Head company core purposes
 (2) The purposes covered by this subsection (the head company core purposes) are:
 (a) working out the amount of the *head company's liability (if any) for income tax calculated by reference to any income year in which any of the period occurs or any later income year; and
 (b) working out the amount of the head company's loss (if any) of a particular *sort for any such income year.
Note: The single entity rule would affect the head company's income tax liability calculated by reference to income years after the entity ceased to be a member of the group if, for example, assets that the entity held when it became a subsidiary member remained with the head company after the entity ceased to be a subsidiary member.

Entity core purposes
 (3) The purposes covered by this subsection (the entity core purposes) are:
 (a) working out the amount of the entity's liability (if any) for income tax calculated by reference to any income year in which any of the period occurs or any later income year; and
 (b) working out the amount of the entity's loss (if any) of a particular *sort for any such income year.
Note: An assessment of the entity's liability calculated by reference to income tax for a period when it was not a subsidiary member of the group may be made, and that tax recovered from it, even while it is a subsidiary member.

What is a sort of loss?
 (4) Each of these paragraphs identifies a sort of loss:
 (a) *tax loss;
 (b) *film loss;
 (c) *net capital loss.
This subsection lists all the sorts of loss.

Head company rules

701‑5  Entry history rule