Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 7/20)
Character Range: 6236653–6239467

165‑115X(4).
 (2) If the *head company chooses this subsection, the interest's *tax cost setting amount (apart from this section) just before the leaving time is reduced to nil.
 (3) If the *head company chooses this subsection, the interest's *tax cost setting amount (apart from this section) just before the leaving time is reduced by the adjustment amount under section 165‑115ZB, which is calculated on the basis that:
 (a) just before the leaving time, all the *membership interests in the leaving entity constituted a single relevant equity interest under section 165‑115X that the head company had in the leaving entity; and
 (b) the adjustment amount is worked out and applied in accordance with subsection 165‑115ZB(6), but disregarding the paragraphs of that subsection except paragraphs 165‑115ZB(6)(a) and (d).
 (4) The *head company's choice must be made within 6 months after the leaving time, or within a further period allowed by the Commissioner.
 (5) After that 6 months, or that further period, the head company is taken to have chosen subsection (2) unless it is established that the head company made a different choice within that 6 months or further period.

Non‑membership equity interests
 (6) Subsection 711‑15(2) (which treats *non‑membership equity interests as *membership interests) also applies for the purposes of this section, on the basis that the *consolidated group referred to in section 715‑240 is the old group referred to in that subsection.

715‑260  If neither of sections 715‑245 and 715‑250 applies
 (1) This section applies if:
 (a) no *alteration time has occurred in relation to the *head company of the *consolidated group since the formation time and before the leaving time; and
 (b) the leaving time is not an *alteration time for the leaving entity under subsection 715‑245(2).
 (2) The leaving entity's first *alteration time after the leaving time is determined:
 (a) on the basis that the reference time under subsection 165‑115L(2) or 165‑115M(2) is the time just after the formation time; and
 (b) making the additional assumptions in section 715‑290.
 (3) If the leaving entity uses the *individual asset method of working out its *adjusted unrealised loss at that first *alteration time, then for the purposes of:
 (a) step 1 of the method statement in subsection 165‑115U(1); and
 (b) the method statement in subsection 165‑115W(1);
the leaving entity is taken to have had no earlier alteration time.

715‑265  Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest
 (1) For the purposes of Subdivision 165‑CD, treat the *head company of a *consolidated group as not having a relevant equity interest in a *loss company at a particular time if:
 (a) the head company is an