Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 9/20)
Character Range: 6241602–6244522

of these provisions is appropriate:
 (a) subsection 701‑55(3) (about trading stock);
 (b) subsection 701‑55(5), but only so far as it relates to working out the *reduced cost base of a *membership interest that was *acquired on or after 20 September 1985;
 (c) subsection 701‑55(6) (about revenue assets).
Note: Section 701‑55 is about setting the tax cost of an asset.
 (5A) For the purposes of subsection (5), in determining whether the *head company has the relevant equity interest, disregard the operation of subsection 701‑1(1) (the single entity rule) in applying subsections 165‑115X(2C) and 165‑115X(4).
 (6) If the *head company chooses this subsection, the interest's *tax cost setting amount (apart from this section) just before the leaving time is reduced to nil.
 (7) If the *head company chooses this subsection, the interest's *tax cost setting amount (apart from this section) just before the leaving time is reduced by the adjustment amount under section 165‑115ZB, which is calculated on the basis that:
 (a) just before the leaving time:
 (i) all the *membership interests in the leaving entity constituted a single relevant equity interest under section 165‑115X that the *head company had in the leaving entity; and
 (ii) each of those interests was an equity under section 165‑115X that the *head company had in the leaving entity; and
 (b) the adjustment amount is worked out and applied in accordance with subsection 165‑115ZB(6), but disregarding the paragraphs of that subsection except paragraphs 165‑115ZB(6)(a) and (d).
 (8) The *head company's choice must be made within 6 months after the leaving time, or within a further period allowed by the Commissioner.
 (9) After that 6 months, or that further period, the head company is taken to have chosen subsection (6) unless it is established that the head company made a different choice within that 6 months or further period.

Non‑membership equity interests
 (10) Subsection 711‑15(2) (which treats *non‑membership equity interests as *membership interests) also applies for the purposes of this section, on the basis that the *consolidated group is the old group referred to in that subsection.

Subdivision 715‑C—Common rules for the purposes of Subdivisions 715‑A and 715‑B

715‑290  Additional assumptions to be made when using reference time
  The additional assumptions to be made are that, throughout the period starting at the reference time and ending just before the leaving time:
 (a) the leaving entity was in existence; and
 (b) the *head company held and beneficially owned all the *membership interests in the leaving entity (instead of whoever actually did); and
 (c) those membership interests remained the same; and
 (d) the head company directly controlled the voting power in the leaving entity.

Subdivision 715‑D—Treatment of company's deferred losses under Subdivision 170‑D on joining a consolidated group

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