Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 16/20)
Character Range: 6259413–6262106

liability is or is part of a *Division 230 financial arrangement.
 (2) If subparagraph (1)(b)(i) applies:
 (a) in the case of an asset—for the purposes of section 230‑60, assume that the leaving entity acquired the asset (as mentioned in subsection 701‑55(5A)) at the leaving time in return for the leaving entity starting to have an obligation to provide the payment mentioned in that subsection; and
 (b) in the case of a liability—for the purposes of section 230‑60, assume that the leaving entity started to have the liability at the leaving time in return for the leaving entity starting to have a right to receive the payment mentioned in subsection 715‑379(2).
 (3) If subparagraph (1)(b)(ii) applies:
 (a) in the case of an asset—for the purposes of section 230‑60, assume that the head company acquired the asset (as mentioned in subsection 701‑55(5A)) at the leaving time in return for the head company starting to have an obligation to provide the payment mentioned in that subsection; and
 (b) in the case of a liability—for the purposes of section 230‑60, assume that the head company started to have the liability at the leaving time in return for the head company starting to have a right to receive the payment mentioned in subsection 715‑379(2).

715‑380  Exit history rule not to affect certain matters related to Division 230 financial arrangements

Spreading fees gain or loss
 (1) Subsection (2) applies if:
 (a) an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) but for the cessation of membership and section 701‑40 (the exit history rule), the *head company of the group would spread a fees gain or loss mentioned in section 230‑160 over a period that ended after the leaving time.
 (2) Despite section 701‑40 (the exit history rule), the *head company of the *consolidated group continues to spread the fees gain or loss over that period, in accordance with section 230‑160.

Assessable income and deductions under section 701‑61
 (3) Subsection (4) applies if:
 (a) an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) but for the cessation of membership and section 701‑40 (the exit history rule):
 (i) an amount would be included in the assessable income of the *head company of the group under section 701‑61 for an income year ending after the leaving time; or
 (ii) the head company of the group would be entitled to a deduction under section 701‑61 for an income year ending after the leaving time.
 (4) Despite section 701‑40 (the exit history rule), the amount is included in the assessable income of the