Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:7_2:p3
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 7 cl 2 (pt 3/9)
Character Range: 71380–74239

to be worked out in special way
 (2) If this section applies, the group's allocable cost amount for each of the entities, other than a chosen transitional entity, that become subsidiary members when the group comes into existence (each of which is a non‑chosen subsidiary) is worked out in a special way.

How to work out allocable cost amount
 (3) The allocable cost amount for each non‑chosen subsidiary is the sum of:
 (a) the head company adjusted allocable amount for the non‑chosen subsidiary (see subsection (4)); and
 (b) for each sub‑group (see subsection (6)) that exists in relation to the non‑chosen subsidiary—the sub‑group's notional allocable cost amount (see subsection(5)) for the non‑chosen subsidiary.

Head company adjusted allocable amount
 (4) The head company adjusted allocable amount for the non‑chosen subsidiary is the amount that would be the transitional group's allocable cost amount for that entity if;
 (a) the holding of all sub‑group membership interests were disregarded; and
 (b) only the following proportion of each of the step 2 to step 7 amounts in the table in section 705‑60 was taken into account:

  where:
  market value of all membership interests in non‑chosen subsidiary means the market value, at the time the group comes into existence, of all membership interests in the non‑chosen subsidiary that are held by entities that become members of the group at that time.
  market value of head company's direct and indirect membership interests in non‑chosen subsidiary means the market value, at the time the group comes into existence, of all membership interests in the non‑chosen subsidiary that the head company holds directly or indirectly through interposed entities that become subsidiary members of the group at that time and are not included in any sub‑group in relation to the non‑chosen subsidiary.

Sub‑group's notional allocable cost amount
 (5) For each sub‑group that exists in relation to the non‑chosen subsidiary, there is a sub‑group's notional allocable cost amount. That amount is the amount that would be a consolidated group's allocable cost amount for the non‑chosen subsidiary if:
 (a) the consolidated group came into existence at the same time as the transitional group and consisted only of the non‑chosen subsidiary and the entities comprising the sub‑group; and
 (b) the chosen transitional entity in the sub‑group were the head company of the consolidated group; and
 (c) the only membership interests that any entity in the sub‑group held in any other member of the consolidated group were the sub‑group membership interests (see subsection (6)) in relation to the sub‑group; and
 (d) only the following proportion of each of the step 2 to step 7 amounts in the table in section 705‑60 was taken into account:

  where:
  market value of all membership interests in non‑chosen