Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p14
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 14/17)
Character Range: 597670–600524

directly or indirectly through interposed entities that are included in the sub‑group.

Sub‑group and sub‑group membership interests
 (6) If a chosen transitional entity holds membership interests in a non‑chosen subsidiary, either directly or indirectly through one or more other entities, each of which is a non‑chosen subsidiary:
 (a) the chosen transitional entity and each interposed non‑chosen subsidiary comprise a sub‑group in relation to the non‑chosen subsidiary (unless the non‑chosen subsidiary is included in a sub‑group in relation to another non‑chosen subsidiary); and
 (b) the following membership interests are the sub‑group membership interests in relation to the sub‑group:
 (i) the membership interests that the chosen transitional entity holds directly in the non‑chosen subsidiary or in any of the interposed non‑chosen subsidiaries;
 (ii) the membership interests that each interposed non‑chosen subsidiary holds directly in the non‑chosen subsidiary or in any of the other interposed non‑chosen subsidiaries.

701‑25  No operation of value shifting and loss transfer provisions to membership interests in chosen transitional entities
  If any provision of the Income Tax Assessment Act 1997 would, because of events that happened before the time the transitional group came into existence, apply to a CGT event that happens after that time to change the cost base or reduced cost base of the members' membership interests in a chosen transitional entity, the provision does not so apply.
Note: For example, such a provision could otherwise apply where a loss transfer or value shift involving the entity has occurred.

701‑32  No adjustment of amount of liabilities required in working out allocable cost amount
 (1) This section has effect for the purposes of applying section 705‑70 (step 2 of allocable cost amount) of the Income Tax Assessment Act 1997 in relation to a transitional entity.
 (2) In spite of subsection 705‑70(1A) of that Act, if the amount of an accounting liability of the transitional entity would be different when it becomes an accounting liability of the transitional group, that difference is not taken into account in working out the amount of the liability.

701‑35  Act, transaction or event giving rise to CGT event for pre‑formation roll‑over after 16 May 2002 to be disregarded if cost base etc. would be different
 (1) If:
 (a) after 16 May 2002 and before the transitional group came into existence, a CGT event happened in relation to an asset (the roll‑over asset) for which there was:
 (i) a roll‑over under Subdivision 126‑B of the Income Tax Assessment Act 1997; or
 (ii) roll‑over relief under section 40‑340 of that Act in a case covered by item 4 of the table in subsection (1) of that section; and
 (b) the cost base or reduced cost base of the roll‑over asset or any other asset that: