Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p90
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 90/95)
Character Range: 5777833–5780365

the *value of the *registered emissions unit at the end of the income year that ends, or, if section 701‑30 applies, of the income year that is taken by subsection (3) of that section to end, when the entity becomes a *subsidiary member is taken to be equal to:
 (a) if the unit was *held by the joining entity at the start of the income year—the value of the unit at the start of the income year; or
 (b) otherwise—the expenditure incurred by the joining entity in becoming the holder of the unit.
Note: See also section 701A‑7 of the Income Tax (Transitional Provisions) Act 1997.

701‑40  Exit history rule
 (1) If the entity ceases to be a *subsidiary member of the group, this section has effect for the entity core purposes, so far as they relate to any thing covered by subsection (2) (an eligible asset etc.) after it becomes that of the entity because subsection 701‑1(1) (the single entity rule) ceases to apply to the entity.

Assets, liabilities and businesses covered
 (2) This subsection covers the following:
 (a) any asset;
 (b) any liability or other thing that, in accordance with *accounting principles, is a liability;
 (c) any business;
that becomes that of the entity because subsection 701‑1(1) (the single entity rule) ceases to apply to the entity when it ceases to be a *subsidiary member of the group.

Head company history inherited
 (3) Everything that happened in relation to any eligible asset etc. while it was that of the *head company, including because of any application of section 701‑5 (the entry history rule), is taken to have happened in relation to it as if it had been an eligible asset etc. of the entity.
Note 1: If the eligible asset etc. was brought into the group when an entity became a subsidiary member, section 701‑5 (the entry history rule) would have had the effect that things happening to the eligible asset etc. while it was that of the entity would be taken to have happened as if it was that of the head company. Such things will in turn be taken by this subsection to have happened in relation to the eligible asset etc. as if it were that of the entity that takes the asset out of the group.
Note 2: Other provisions of this Part may affect the tax history that is inherited (e.g. asset cost base history is affected by section 701‑45).

701‑45  Cost of assets consisting of liabilities owed to entity by members of the group
 (1) If the entity ceases to be a *subsidiary member of the group, this section has effect for the entity core purposes, so far as they relate to