Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 12/20)
Character Range: 6249172–6251908

2: Paragraph (3)(b) has the effect that if the deferred loss company has other 165‑CC tagged assets affected by section 715‑50 or 715‑55 (because the membership time is when the group comes into existence, and the other 165‑CC tagged assets are membership interests in, or accounting liabilities owed by, another group member), those sections are applied before this section.
 (4) When it is created because of subsection (3), the pool consists of each 170‑D deferred loss covered by subsection (2), and its loss denial balance is equal to the *final RUNL referred to in paragraph (3)(b).
Note: The pool is distinct from any other loss denial pool of the head company, for example, one created under this section because another entity becomes a subsidiary member of the group at the membership time.

715‑365  How loss denial balance is applied when 170‑D deferred loss revives
 (1) If a *170‑D deferred loss on a *CGT asset is in a *loss denial pool of an entity when the loss *revives, the *capital loss or deduction that section 170‑275 would, apart from this section, treat the entity as having made or become entitled to at that time in respect of the asset is reduced by the lesser of:
 (a) the amount of the capital loss or deduction; and
 (b) the pool's *loss denial balance (as reduced by any previous reductions under section 715‑130, subsection 715‑160(1) or this subsection);
and the loss denial balance is reduced by the same amount.
 (2) Subsection (1) applies to *170‑D deferred losses in the order in which they *revive. If 2 or more revive at the same time, it applies to them in whichever order the entity determines.
 (3) Subsection (1) reduces a *loss denial balance before section 715‑130 does, unless the *realisation event happens after the leaving time referred to in that section.

Subdivision 715‑E—Interactions with Division 775 (Foreign currency gains and losses)

Table of sections
715‑370 Cost setting—reference time for determining currency exchange rate effect

715‑370  Cost setting—reference time for determining currency exchange rate effect
 (1) This section applies if:
 (a) an entity (the joining entity) becomes a *subsidiary member of a *consolidated group at a time (the joining time); and
 (b) taking into account the operation of subsection 701‑1(1) (the single entity rule), the *head company of the group held an asset at the joining time because the joining entity became a subsidiary member of the group; and
 (c) the asset is a reset cost base asset at the joining time (within the meaning of section 705‑35); and
 (d) in working out the asset's *tax cost setting amount, the currency exchange rate of a particular *foreign currency is taken into account in determining the *market value