Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p19
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 19/45)
Character Range: 5955676–5958592

of pre‑CGT status because Division 149 etc. applied) existed; and
 (d) the application of Division 149 of this Act, or the provision of the Income Tax Assessment Act 1936, as mentioned in paragraph 705‑57(4)(b) of this Act happened because the entity that became the *head company of the group (the potential head entity) *acquired all of the *membership interests in the other entity mentioned in that paragraph directly or indirectly from another entity (the vendor); and
 (e) at the time of the acquisition, the potential head entity did not control (for value shifting purposes) the vendor, and vice‑versa, and another entity did not control (for value shifting purposes) the potential head entity and the vendor; and
 (f) the acquisition, or each of the acquisitions, mentioned in subsection 705‑57(4) was a *same asset roll‑over or was one to which any of former sections 160ZZN to 160ZZOC, 160ZZPA and 160ZZPJ of the Income Tax Assessment Act 1936 applied;
then subsection 705‑57(6) does not apply as mentioned in paragraph (a) of this subsection.

Subdivision 705‑C—Case where a consolidated group is acquired by another

Guide to Subdivision 705‑C

705‑170  What this Subdivision is about

      When a consolidated group is acquired by another consolidated group, modifications are made to the operation of Division 701 (the core rules) and Subdivision 705‑A (tax cost setting amount where a single entity joins a consolidated group) basically to ensure that the tax cost setting amount for assets of the acquired group that become those of the acquiring group reflects the cost to the latter group of acquiring the former.

Table of sections

Application and object
705‑175 Application and object of this Subdivision

Modified application of Division 701 in relation to acquired group etc.
705‑180 Modifications of Division 701

Modified application of Subdivision 705‑A in relation to acquiring group
705‑185 Subdivision 705‑A has effect with modifications

Modifications of Subdivision 705‑A for the purposes of this Subdivision
705‑195 Modified application of subsection 705‑65(6)
705‑200 Modified application of section 705‑85

Application and object

705‑175  Application and object of this Subdivision

Application
 (1) This Subdivision applies if all of the *members of a *consolidated group (the acquired group) become members of another consolidated group (the acquiring group) at a particular time (the acquisition time) as a result of the *acquisition of *membership interests in the *head company of the acquired group.

Object
 (2) The object of this Subdivision is:
 (a) to modify the rules in Division 701 (the core rules) to complement the treatment of the acquired group as a single entity that applied before the acquisition time; and
 (b) to modify Subdivision 705‑A (which basically determines the tax cost setting amount for assets of an entity joining a consolidated group) to ensure