Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p7
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 7/31)
Character Range: 624728–627592

1997 to be a part of the head company, continued to be held by the head company until the entity ceased to be a subsidiary member.

Excepted assets
 (2) For the purposes of paragraph (1)(d), excepted assets are assets that:
 (a) the head company disposed of in the ordinary course of a business that the head company carried on by virtue of the entity being taken by subsection 701‑1(1) of the Income Tax Assessment Act 1997 to be a part of the head company; and
 (b) were minor assets, having regard to the nature and size of that business.

Immediate availability of capital loss or net capital loss
 (3) If this section applies, neither subsection 104‑500(4) nor subsection 104‑500(5) of the Income Tax Assessment Act 1997 applies in relation to the head company for the income year in which the entity ceases to be a subsidiary member of any later income year.

Division 701C—Modified application etc. of provisions of Income Tax Assessment Act 1997: transitional foreign‑held membership structures

Table of Subdivisions
701C‑A Overview
701C‑B Membership rules allowing foreign holding
701C‑C Modifications of tax cost setting rules

Subdivision 701C‑A—Overview

Table of sections
701C‑1 Overview

701C‑1  Overview
  This Division:
 (a) sets out, for the purposes of item 2, column 4 of the table in subsection 703‑15(2) of the Income Tax Assessment Act 1997, rules that allow certain entities to be subsidiary members of consolidatable groups or consolidated groups where other entities are interposed between them and the head company of the group (see Subdivision 701C‑B); and
 (b) modifies certain rules in Part 3‑90 of the Income Tax Assessment Act 1997 relating to setting the tax cost of assets to take account of those membership rules (see Subdivision 701C‑C).
Note: This Division has effect in relation to a MEC group in the same way in which it has effect in relation to a consolidated group (see sections 719‑2 and 719‑10 of this Act).

Subdivision 701C‑B—Membership rules allowing foreign holding

Table of sections
701C‑10 Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a foreign resident and the subsidiary member is a company
701C‑15 Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a foreign resident and the subsidiary member is a trust or partnership
701C‑20 Transitional foreign‑held subsidiaries and transitional foreign‑held indirect subsidiaries

701C‑10  Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a foreign resident and the subsidiary member is a company
 (1) This section describes, for the purposes of item 2, column 4 of the table in subsection