Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 18/20)
Character Range: 6264413–6267125

section is not intended to limit the effect that subsection 701‑1(1) and section 701‑5 have apart from this section.

715‑450  No reductions or other consequences for interests subject to loss cancellation under Subdivision 715‑H
  If section 715‑610 reduces a loss that would otherwise be *realised for income tax purposes by a *realisation event that happens to an *equity or loan interest in an entity:
 (a) the loss is not subject to reduction under Division 723 (Direct value shifting by creating right over non‑depreciating asset) or 727 (Indirect value shifting); and
 (b) the interest's *adjustable value is not, and is taken never to have been, reduced under Division 725 because of a *direct value shift during the ownership period referred to in subsection 715‑610(2); and
 (c) the interest's *adjustable value is not, and is taken never to have been, reduced under Division 727 because of an *indirect value shift during that period.
Note: Section 715‑610 is about cancelling a loss on a realisation event for certain kinds of interests in a member of a consolidated group.

Subdivision 715‑H—Cancelling loss on realisation event for direct or indirect interest in a member of a consolidated group

Table of sections
715‑610 Cancellation of loss
715‑615 Exception for interests in entity leaving consolidated group
715‑620 Exception if loss attributable to certain matters

715‑610  Cancellation of loss
 (1) This section reduces to nil a loss that would otherwise be *realised for income tax purposes by a *realisation event that happens to an *equity or loan interest (the realised interest) in an entity (the first entity) when it is owned by another entity (the owner), if the conditions in subsections (2) and (4) are met.
 (2) The first condition is that, at some time during the period (the ownership period) when the owner owned the realised interest:
 (a) the first entity was a *subsidiary member of a *consolidated group, and the owner was not a *member of the group; or
 (b) the realised interest was an *external indirect equity or loan interest in a subsidiary member of a consolidated group; or
 (c) the realised interest was an *equity or loan interest in an entity that, at that time:
 (i) owned an equity or loan interest in a subsidiary member of a consolidated group; and
 (ii) was not a member of the group; or
 (d) the realised interest was an *equity or loan interest in an entity that owned at that time an external indirect equity or loan interest in a subsidiary member of a consolidated group; or
 (e) all of these conditions are satisfied at that time:
 (i) the realised interest was an equity or loan interest, an *indirect equity or loan interest or an external indirect