Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 8/45)
Character Range: 5927794–5930367

time occurred or any earlier income year; and
 (b) accrued to the joined group before the joining time (see subsection (2) of this section).
 (2) For the purposes of subsection (1), a *FRT disallowed amount accrued to the joined group before the joining time if and to the extent that, assuming that as it arose it were instead a profit that was accruing, a distribution of that profit would have been a distribution made to the joined group out of profits that accrued to the joined group before the joining time.
 (3) However, a *FRT disallowed amount is not to be taken into account under subsection (1) to the extent that it reduced the undistributed profits comprising the step 3 amount in the table in section 705‑60.

705‑105  Continuity of holding membership interests—steps 3 to 5A in working out allocable cost amount
  If:
 (a) a *membership interest that a *member of the joined group held in the joining entity at the joining time was taken under this Act to have been *acquired by the member for its *market value at a particular time (the market value time); or
 (b) the *cost base and *reduced cost base of a membership interest that a member of the joined group held in the joining entity at the joining time were, before that time, changed on one or more occasions by this Act so that they equalled the market value of the membership interest at a particular time (the last of which times is also the market value time);
then, for the purpose of sections 705‑90, 705‑95, 705‑100, 705‑102 and 713‑25, the *head company is taken not to have held that membership interest, either directly or indirectly, before the market value time.

705‑110  If joining entity transfers a loss to the head company—step 6 in working out allocable cost amount
 (1) For the purposes of step 6 in the table in section 705‑60, the step 6 amount is worked out by multiplying the sum of the losses mentioned in subsection (2) by the *corporate tax rate.
 (2) The losses are the joining entity's losses of any *sort that:
 (a) were not *utilised by the joining entity for the income year in which the joining time occurred or any earlier income year; and
 (b) did not accrue to the joined group before the joining time (see subsection 705‑90(8)); and
 (c) are transferred to the *head company under Subdivision 707‑A; and
 (d) are not cancelled under section 707‑145.

705‑112  If joining entity transfers a FRT disallowed amount to the head company—step 6A in working out allocable cost amount
 (1) For the purposes of step 6A in the table in section 705‑60, the step 6A amount is