Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_1:p5
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 5/13)
Character Range: 111755–114392

table in subsection 705‑75(2) (about reduction of the step 2 amount) for an accounting liability of the joining entity that is owed to a *member of the joined group at the joining time is reduced if:
 (a) apart from this section, the comparison amount would be the *reduced cost base (if appropriate, as modified by a later provision of section 705‑75) of the asset of that member that is constituted by the accounting liability; and
 (b) the asset is at that time a *165‑CC tagged asset of that member, and that member owned it at the *changeover time; and
 (c) that member's *final RUNL just before the joining time (as reduced by any reductions under section 715‑50) was greater than nil; and
 (d) that member does not satisfy the *same business test for:
 (i) the period (the same business test period) consisting of the *head company's *trial year; and
 (ii) the time (the test time) just before the *changeover time.

Note: Paragraph (1)(c) has the effect that if both this section and section 715‑50 apply to the same member of the joined group, section 715‑50 is applied before this section.

 (2) If at the joining time that *member holds:
 (a) 2 or *more assets constituted by accounting liabilities of the joining entity; or
 (b) at least one asset constituted by an accounting liability of the joining entity, and at least one asset constituted by an accounting liability of another member of the group;
this section applies to each such asset in whichever order that member determines.

Amount of reduction

 (3) The comparison amount is reduced to the asset's *market value at the joining time.

 (4) However, if that member's *final RUNL (as reduced by any previous reductions under section 715‑50 or this section) is less than the difference between:
 (a) the *reduced cost base referred to in paragraph (1)(a); and
 (b) the asset's *market value at the joining time;
the comparison amount is instead reduced by that final RUNL.

 (5) That *final RUNL is reduced by the amount of the reduction under subsection (3) or (4).

165‑CC tagged assets that form loss denial pools of head company when consolidated group is formed

715‑60  Assets that the head company already owns

 (1) At the time (the formation time) when a *consolidated group comes into existence under paragraph 703‑5(1)(a), a loss denial pool of the *head company is created if:
 (a) the formation time is not a *changeover time for the head company; and
 (b) at the formation time, the head company owns a *CGT asset:
 (i) that is a *165‑CC tagged asset of the head company at that time; and
 (ii) that it owned at the *changeover time; and
 (iii) that