Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p2
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 2/31)
Character Range: 612524–615245

all of its objects are treated as if they were beneficiaries of that trust with equal interests in it.

701A‑5  Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to trading stock of continuing majority‑owned entity
 (1) The operation of Part 3‑90 of the Income Tax Assessment Act 1997 is modified in accordance with this section in relation to each asset of a continuing majority‑owned entity that is trading stock just before the entity becomes a subsidiary member of the entity's designated group.

Continuing majority‑owned entity to revalue its trading stock under normal provisions
 (2) For the entity core purposes:
 (a) subsection 701‑35(4) of the Income Tax Assessment Act 1997 does not apply in relation to the asset; and
 (b) instead, the value of the asset at the end of the income year that ends, or, if section 701‑30 of that Act applies, of the income year that is taken by subsection (3) of that section to end, is the value determined in accordance with sections 70‑45 to 70‑70 of that Act.

For head company, trading stock to be retained cost base asset with tax cost setting amount equal to entity's year‑end valuation
 (3) For the head company core purposes when the continuing majority‑owned entity becomes a subsidiary member of the designated group, the asset is a retained cost base asset whose tax cost setting amount is equal to the value applicable in accordance with paragraph (2)(b).

701A‑7  Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to registered emissions units of continuing majority‑owned entity
 (1) The operation of Part 3‑90 of the Income Tax Assessment Act 1997 is modified in accordance with this section in relation to each asset of a continuing majority‑owned entity that is a registered emissions unit just before the entity becomes a subsidiary member of the entity's designated group.

Continuing majority‑owned entity to revalue its registered emissions units under normal provisions
 (2) For the entity core purposes:
 (a) subsection 701‑35(5) of the Income Tax Assessment Act 1997 does not apply in relation to the asset; and
 (b) instead, the value of the asset at the end of the income year that ends, or, if section 701‑30 of that Act applies, of the income year that is taken by subsection (3) of that section to end, is the value determined in accordance with sections 420‑51 to 420‑58 of that Act.

For head company, registered emissions units to be retained cost base asset with tax cost setting amount equal to entity's year‑end valuation
 (3) For the head company core purposes when the continuing majority‑owned entity becomes a subsidiary member of the designated group, the asset is a retained cost base asset whose tax