Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 10/13)
Character Range: 6109957–6112708

leaving entity at the leaving time is taken to be nil.
 (3) Adjust the old group's *allocable cost amount for the leaving entity as follows:
 (a) if the amount under subsection (4) exceeds the amount under subsection (6)—increase the allocable cost amount by the excess;
 (b) if the amount under subsection (4) falls short of the amount under subsection (6)—reduce the allocable cost amount by the shortfall.
 (4) Subject to subsection (5), the amount under this subsection is:
 (a) if Subdivision 705‑A applied in relation to the leaving entity at the time it became a *subsidiary member of the old group—the total of the amounts that were taken into account under subsection 705‑65(1) for *membership interests in the leaving entity at that time; or
 (b) otherwise—assuming that Subdivision 705‑A had applied in relation to the leaving entity at the time it became a subsidiary member of the old group, the total of the amounts that would have been taken into account under subsection 705‑65(1) for membership interests in the leaving entity at that time.
 (5) For the purposes of subsection (4), if a *membership interest in the leaving entity was covered under paragraph 705‑125(2)(a) (pre‑CGT interests) when it became a *subsidiary member of the old group, treat the amount that was taken into account for the membership interest under subsection 705‑65(1) as the interest's *market value just after the Division 149 time.
 (6) The amount under this subsection is the old group's *allocable cost amount for the leaving entity, worked out on the assumption that the leaving entity ceased to be a *subsidiary member of the old group just after the Division 149 time.

711‑75  Additional integrity rule if membership interests treated as having been acquired before 20 September 1985 under section 711‑65—application of CGT event K6
 (1) This section applies if the leaving entity ceases to be a *subsidiary member of the old group because of a situation giving rise to *CGT event A1, C2, E1, E2 or E8 in relation to one or more *membership interests in the leaving entity.
 (2) For the purposes of applying subsections 104‑230(2) and (8) in relation to those *membership interests:
 (a) disregard subsection 701‑1(1) (the single entity rule) in working out the *net value of the leaving entity; and
 (b) treat the reference in subsection 104‑230(2) to "Just before the other event happened" as a reference to "Just before the leaving time".
Note 1: The single entity rule will continue to apply in determining whether the property mentioned in subsection 104‑230(2) for the leaving entity was acquired on or after 20 September 1985.
Note 2: However, in a case of multiple exit from a consolidated group (see section 711‑55), the property mentioned