Document ID: chunk:federal_register_of_legislation:C2004C01257:clause:2_1:p20
Version: federal_register_of_legislation:C2004C01257
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 20/20)
Character Range: 57339–58815

not applied.

Step 6. Multiply the amount worked out in Step 5 by the factor worked out in Step 4. The result is the amount to be included in the partner's assessable income.

243‑70  Application of Division to companies ceasing to be 100% subsidiary

 (1) This section applies to a company if:
 (a) the company ceases to be a *100% subsidiary in relation to at least one other company; and
 (b) at that time, the company is the debtor for a *limited recourse debt that has not been paid in full by the company; and
 (c) the creditor's rights under the debt are transferred or assigned to another entity.

 (2) If this section applies, this Division applies as if the debt were terminated, and refinanced with *non‑arm's length limited recourse debt, at the time the company ceased to be a *100% subsidiary of that other company.

243‑75  Application of Division where debt forgiveness rules also apply

 (1) This section is to remove doubt about how this Division and Schedule 2C to the Income Tax Assessment Act 1936 apply where both apply to the same debt.

 (2) Where both apply:
 (a) this Division is to be applied first and is to be applied disregarding any operation of that Schedule; and
 (b) any amounts included in assessable income under this Division are taken into account under paragraph 245‑85(1)(a) of that Schedule.

[The next Part is Part 3‑45.]

Part 2—Consequential amendments: arrangements treated as a sale and loan

Income Tax Assessment Act 1936