Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_1:p8
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 8/13)
Character Range: 118911–121597

the one or more *CGT assets of which the entity's loss *denial pool consisted; and
 (b) has a loss denial balance equal to the *loss denial balance of the entity's loss denial pool;
just before the formation time.

How Subdivision 165‑CC applies to consolidated groups

715‑75  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 165‑CC (about change of ownership or control of a company that has an unrealised net loss).

Note: One consequence of this is that the head company is the only member of a consolidated group that can have a changeover time and be subject to consequences under Subdivision 165‑CC. The head company is treated as owning all CGT assets owned by group members, and as making relevant losses.

 (2) This section is not intended to limit the effect that subsection 701‑1(1) and section 701‑5 have apart from this section.

Effect on Subdivision 165‑CC of entity leaving consolidated group

715‑80  Application of sections 715‑85 to 715‑110

  Sections 715‑85 to 715‑110 apply if, at a particular time (the leaving time), an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group.

Note 1: If a changeover time happened to the head company at or after the group came into existence and before the leaving time, Subdivision 165‑CC does not apply to the head company at and after the leaving time, in respect of assets that leave with the leaving entity, in relation to the changeover time.

 This is because the head company can no longer make a capital loss, or become entitled to a deduction, in respect of a CGT event happening to any of those assets.

Note 2: If, just before the leaving time, the head company had a loss denial pool, see section 715‑120.

715‑85  First changeover time for leaving company at or after leaving time

  If the leaving entity is a company, its first *changeover time at or after the leaving time is determined:
 (a) on the basis that the reference time under subsection 165‑115A(2A) is the one that would be used in determining whether the leaving time was a changeover time for the head company; and
 (b) making the additional assumptions in section 715‑290.

Note: If the leaving entity is a trust, it cannot have a changeover time (because Subdivision 165‑CC applies only to companies), so section 715‑95 applies to it instead: see subsection 715‑95(2).

715‑90  How same business test applies if leaving time is changeover time for leaving company

 (1) This section applies if:
 (a) the leaving entity is a company; and
 (b) the leaving time is a