Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 5/19)
Character Range: 6292949–6295755

applying in relation to reinsurance under contracts made at or after the leaving time and in an income year for which the election applies under that section.
Note: Subsection (4) explains how section 148 of the Income Tax Assessment Act 1936 applies in relation to reinsurance under contracts made before the joining time.

Relationship with other provisions
 (9) Section 701‑40 (Exit history rule) and the choice provision have effect subject to this section.

Subdivision 715‑U—Effect on conduit foreign income

Table of sections
715‑875 Extension of single entity rule and entry history rule
715‑880 No CFI for leaving entity

715‑875  Extension of single entity rule and entry history rule
 (1) Subsection 701‑1(1) (Single entity rule) and section 701‑5 (Entry history rule) also have effect for all the purposes of Subdivision 802‑A (about conduit foreign income).
 (2) This section is not intended to limit the effect that subsection 701‑1(1) and section 701‑5 have apart from this section.

715‑880  No CFI for leaving entity
  Despite section 701‑40 (the exit history rule), an entity that ceases to be a *subsidiary member of a *consolidated group at a time has no *conduit foreign income at that time.

Subdivision 715‑V—Entity ceasing to be exempt from income tax on becoming subsidiary member of consolidated group

Table of sections
715‑900 Transition time taken to be just before joining time

715‑900  Transition time taken to be just before joining time
 (1) This section has effect if:
 (a) an entity becomes a *subsidiary member of a *consolidated group at a time (the joining time); and
 (b) the entity's *ordinary income and *statutory income were not (to any extent) assessable income just before the joining time.
 (2) Division 57 in Schedule 2D to the Income Tax Assessment Act 1936 and Division 58 of this Act have effect as if the entity's *ordinary income or *statutory income had become to some extent assessable income just before the joining time.
Note 1: Those Divisions deal with entities whose ordinary income and statutory income were previously exempt from income tax.
Note 2: The operation of Division 58 just before the joining time can affect the basis on which the tax cost is set for a depreciating asset that becomes an asset of the head company of the consolidated group at the joining time because of section 701‑1 (the single entity rule). That Division provides the basis for working out under Division 40 the asset's adjustable value. This is the entity's terminating value for the asset, which in turn can affect the tax cost setting amount for the asset under sections 705‑40, 705‑45 and 705‑47.

Subdivision 715‑W—Effect on arrangements where CGT roll‑overs are obtained

Table of sections
715‑910 Effect on restructures—original entity becomes a subsidiary