Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_5:p8
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 8/10)
Character Range: 166852–169664

made because an entity (the shareholder) owns a *share in the subsidiary member; and
 (c) the share must be disregarded under subsection 703‑35(4); and
 (d) the distribution is made to the shareholder, or to another entity because the shareholder owns the share; and
 (e) the entity to which the distribution is made is not a *member of the group.

Note: Subsection 703‑35(4) requires certain shares held under employee share schemes to be disregarded.

 (2) Part 3‑6 operates as if the *distribution were a *frankable distribution made by the *head company of the group to a *member of the head company.

Note: Part 3‑6 deals with imputation.

709‑85  Non‑share distributions by subsidiary members taken to be distributions by head company

 (1) This section operates if:
 (a) an entity holds a *non‑share equity interest in a *subsidiary member of a *consolidated group; and
 (b) the subsidiary member makes a *non‑share distribution to the entity as holder of the interest; and
 (c) the distribution is a *frankable distribution; and
 (d) the entity to which the distribution is made is not a *member of the group.

 (2) Part 3‑6 operates as if the *distribution were a *frankable distribution made by the *head company of the group to a *member of the head company.

Note: Part 3‑6 deals with imputation.

[The next Division is Division 711.]

Division 711—Tax cost setting amount for membership interests where entities cease to be subsidiary members of consolidated groups

Guide to Division 711

711‑1  What this Division is about

      If an entity ceases to be a subsidiary member of a consolidated group, the tax cost setting amount for the group's membership interests in the entity reflects the group's cost for the entity's net assets.

Table of sections

Application and object of this Division

711‑5 Application and object of this Division

Tax cost setting amount for membership interests etc.

711‑10 Tax cost setting amount worked out under this Division
711‑15 Tax cost setting amount where no multiple exit
711‑20 What is the old group's allocable cost amount for the leaving entity?
711‑25 Terminating values of assets that the leaving entity takes with it—step 1 in working out allocable cost amount
711‑30 What is the head company's terminating value for an asset?
711‑35 If head company becomes entitled to certain deductions—step 2 in working out allocable cost amount
711‑40 Liabilities owed to the leaving entity by members of the old group—step 3 in working out allocable cost amount
711‑45 Liabilities etc. owed by the leaving entity—step 4 in working out allocable cost amount
711‑50 Adjustment to allocable cost amount to ensure effect of Subdivision 165‑CC not avoided—step 5 in working out allocable cost amount
711‑55 Tax cost setting amount for membership interests