Document ID: chunk:federal_register_of_legislation:C2011C00698:clause:5_153
Version: federal_register_of_legislation:C2011C00698
Segment Type: clause
Provision Reference: sch 5 cl 153
Character Range: 129961–131611

153  At the end of Subdivision 716‑Z
Add:

716‑860  CGT event straddling joining or leaving time

 (1) This section applies if:
 (a) an entity (the joining entity) becomes a subsidiary member of a *consolidated group at a particular time (the joining time); and
 (b) disregarding the operation of subsection 701‑1(1) (the single entity rule), the joining entity held a *CGT asset at the joining time; and
 (c) taking into account the operation of subsection 701‑1(1) (the single entity rule), the *head company of the group held the CGT asset at the joining time; and
 (d) a *CGT event happened in relation to the asset at a time before the joining time (disregarding this section), but the circumstances that gave rise to the CGT event first existed at a time on or after the joining time.

 (2) This section also applies if:
 (a) an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a particular time (the leaving time); and
 (b) taking into account the operation of subsection 701‑1(1) (the single entity rule), the *head company of the group held a *CGT asset at the leaving time; and
 (c) disregarding the operation of subsection 701‑1(1) (the single entity rule), the leaving entity held the CGT asset at the leaving time; and
 (d) a *CGT event happened in relation to the asset at a time before the leaving time (disregarding this section), but the circumstances that gave rise to the CGT event first existed at a time on or after the leaving time.

 (3) For the purposes of this Act, treat the *CGT event as happening at the time when the circumstances that gave rise to the CGT event first existed.