Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:7_2:p2
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 7 cl 2 (pt 2/9)
Character Range: 68688–71618

entities are chosen transitional entities.

Period for making choice
 (2) The choice must be made by the end of the period described in subsection 703‑50(3) for giving the Commissioner the choice under section 703‑50 that the group is taken to be consolidated.

Choice is irrevocable
 (3) The choice cannot be revoked.

701‑10  Interpretation
  A reference in this Division to:
 (a) a provision of the Income Tax Assessment Act 1997; or
 (b) a consolidated group's allocable cost amount for an entity;
is a reference to that provision as it applies to the group, or to the allocable cost amount as it is worked out for the entity, in accordance with Subdivision 705‑B of that Act and with this Division.

Subdivision 701‑B—Modified application of provisions

Table of sections
701‑15 Tax cost and trading stock value not set for assets of chosen transitional entities
701‑20 Working out allocable cost amount on formation for subsidiary members other than chosen transitional entities
701‑25 No operation of value shifting and loss transfer provisions to membership interests in chosen transitional entities
701‑30 Undistributed, unfrankable pre‑formation profits of non‑chosen transitional entities—adjustment to allocable cost amount and tax cost setting amount reduction for over‑depreciated assets
701‑35 CGT event for pre‑formation roll‑over after 16 May 2002 to be disregarded if cost base etc. would be different
701‑40 When entity leaves transitional group, head company may choose, for purposes of transitional group's allocable cost amount, to increase terminating values of over‑depreciated assets
701‑45 When entity leaves transitional group, head company may choose, for purposes of transitional group's allocable cost amount, to use formation time market values, instead of terminating values, for certain pre‑CGT assets

701‑15  Tax cost and trading stock value not set for assets of chosen transitional entities
  Section 701‑10 (cost to head company of assets that entity brings into group) and subsection 701‑35(4) (setting value of trading stock at tax‑neutral amount) do not apply to the assets of a chosen transitional entity.
Note: The fact that the head company inherits the entity's history under section 701‑5 when the entity becomes a subsidiary member of the group means that the entity's assets would be treated as having the same cost as they would for the entity at that time.

701‑20  Working out allocable cost amount on formation for subsidiary members other than chosen transitional entities

When section applies
 (1) This section applies if any of the transitional entities in the transitional group is a chosen transitional entity.

Allocable cost amount to be worked out in special way
 (2) If this section applies, the group's allocable cost amount for each of the entities, other than a chosen transitional entity, that become subsidiary members when the group comes into existence (each of