Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p14
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 14/31)
Character Range: 642528–645276

to the head company of the group under Division 707 of the Income Tax Assessment Act 1997.

No‑subsidiary condition
 (4) The no‑subsidiary condition is satisfied if, at the transitional time:
 (a) the transitional foreign loss maker does not hold any membership interests in any other entity; or
 (b) both of the following conditions are satisfied:
 (i) the transitional foreign loss maker holds one or more membership interests in one or more other entities;
 (ii) assuming that the head company of the group (rather than the transitional foreign loss maker) held that interest or those interests, none of those other entities would be a subsidiary member of the group.

Transitional foreign loss maker stays in consolidatable group
 (5) To avoid doubt, subsection (1) does not prevent the transitional foreign loss maker from being a member of a consolidatable group at the transitional time for the purposes of:
 (a) subsection 126‑50(6) of the Income Tax Assessment Act 1997; and
 (b) paragraphs 170‑5(2A)(b) and 170‑105(2A)(b) of that Act; and
 (c) subparagraph 820‑599(1)(b)(iii) of that Act.

701D‑15  Choice to apply transitional rules to entity
 (1) The head company of a consolidated group may make a choice in the approved form to apply section 701D‑10 to another entity.
 (2) However, the head company cannot make that choice if subsection 701D‑10(1) previously prevented the entity from being a subsidiary member of a consolidated group.
 (3) The choice must be made by the later of:
 (a) the day on which the head company must give the notice under section 703‑58 of the Income Tax Assessment Act 1997 (notice of choice to consolidate); and
 (b) 30 days after the Taxation Laws Amendment Act (No. 1) 2004 received the Royal Assent.
 (4) The choice cannot be revoked.

Division 702—Modified application of this Act to assets that an entity brings into a consolidated group

Table of sections
702‑1 Modified application of section 40‑77 of this Act to assets that an entity brings into a consolidated group
702‑4 Extended operation of subsection 40‑285(3)
702‑5 Modified application of subsection 40‑285(6) of this Act after entity brings assets into consolidated group

702‑1  Modified application of section 40‑77 of this Act to assets that an entity brings into a consolidated group
 (1) This section applies if:
 (a) an entity becomes a subsidiary member of a consolidated group; and
 (b) just before it does so, section 40‑77 of this Act applies to an asset that it holds.
 (2) For so long as the asset continues to be:
 (a) an asset of the head company because subsection 701‑1(1) (the single entity rule) of the Income Tax Assessment Act 1997 applies; or
 (b) an asset of another entity, where it became such an asset as a result