Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 3/6)
Character Range: 6136471–6139208

interest in the partnership.

713‑215  Terminating value for partnership cost setting interest
 (1) This section modifies the way in which the *terminating value of a *partnership cost setting interest in a partnership is worked out under section 705‑30.
 (2) For the purposes of this Subdivision, the *terminating value of the *partnership cost setting interest at a time is:
 (a) if the interest relates to an asset of the partnership—the interest's individual share of the terminating value of that asset (worked out in accordance with subsection (3)) at that time; or
 (b) otherwise—the terminating value of the interest at that time worked out under section 705‑30.
 (3) To work out the amount of the *terminating value of the asset of the partnership mentioned in paragraph (2)(a), apply section 705‑30 as if:
 (a) the time mentioned in subsection (2) were the joining time mentioned in that section; and
 (b) the partnership were, at the time mentioned in subsection (2), the joining entity mentioned in that section.

Setting tax cost of partnership cost setting interests

713‑220  Set tax cost of partnership cost setting interests if partner joins consolidated group
 (1) This section applies if an entity (the joining entity) that is a partner in a partnership becomes a *subsidiary member of a *consolidated group at a time (the joining time).
Note: If the partnership becomes a subsidiary member of the group at the joining time, the application of this section is affected by section 713‑235.
 (2) In applying the provisions mentioned in subsection 713‑205(3) in relation to the joining entity:
 (a) work out the *tax cost setting amount for each *partnership cost setting interest in the partnership that the joining entity holds at the joining time, in accordance with section 713‑225; and
 (b) except for the purposes of section 713‑235 (which applies only if the partnership joins the group), do not work out tax cost setting amounts for the assets of the partnership; and
 (c) do not work out tax cost setting amounts for the *membership interests in the partnership held by the joining entity.
Note 1: Because of paragraphs (b) and (c), no amount of allocable cost amount for the joining entity is allocated to the assets of the partnership, or to membership interests in the partnership held by the joining entity.
Note 2: If assets of the partnership are held on revenue account, the related partnership cost setting interests held by the joining entity have their tax cost set at the joining time. However, that tax cost does not alter calculations of the net income or exempt income of the partnership, or of a partnership loss, for the purposes of section 92 of the Income Tax Assessment Act 1936.

713‑225  Tax