Document ID: chunk:federal_register_of_legislation:C2016C00633:section:14a:p2
Version: federal_register_of_legislation:C2016C00633
Segment Type: section
Provision Reference: s 14A (pt 2/2)
Character Range: 17260–19441

head company and/or the receiving corporation.
 (4) So far as the provision affects the receiving corporation, it does so on the basis that the single entity rule, the entry history rule and the head company tax cost setting rule affect the head company of the group.
Note 1: This subsection ensures that, where the effect of the provision on the receiving corporation depends on the transferring corporation, the results of those rules in relation to the head company are taken into account in determining the effect of the provision on the receiving corporation. Some examples of this are as follows:
(a) the head company tax cost setting rule affects subsection 15(3) and section 18 by setting the head company's cost base for assets an entity brought into the group when the entity became a subsidiary member of the group;
(b) the entry history rule affects paragraph 16(3)(d) by treating the head company as having been paid, for assuming a liability that was brought into the group by an entity becoming a subsidiary member, the amount paid to the entity for assuming the liability;
(c) the entry history rule affects subsections 17(1) and 22(4) and table item 1 in subsection 22(1) by treating the head company as having included in its assessable income amounts included in the assessable income of an entity that later became a subsidiary member of the group;
(d) the entry history rule affects subsections 17(1) and (2) and 22(4) by treating deductions allowable to an entity before becoming a subsidiary member of the group as having been allowable to the head company.
Note 2: This subsection also ensures that, if the head company is a financial corporation, the receiving corporation is affected by the provision operating in relation to the head company of the group as the transferring corporation (because the single entity rule operates to treat the subsidiary member of the group as part of the head company, so the transfer is treated as being from that company).

Provisions whose operation is not modified
 (5) To avoid doubt, this section does not affect the operation of the following provisions:
 (b) section 23;
 (c) Division 8.

Division 2—General relief