Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p7
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 7/20)
Character Range: 111961–114706

than one that, in accordance with *accounting standards, is a current asset.

Note: A pre‑CGT factor is not worked out for current assets because they would, in the ordinary course of operations of the joining entity, be consumed or disposed of within 12 months.

How to work out pre‑CGT factor

 (3) The pre‑CGT factor is the amount (not exceeding 1) worked out by dividing:
 (a) the sum of:
 (i) for each *membership interest in the joining entity held by the *head company that is a *pre‑CGT asset of the head company—the interest's *market value at the joining time; and
 (ii) for each membership interest in the joining entity held by a *subsidiary member that has a pre‑CGT factor—the interest's market value at the joining time multiplied by its pre‑CGT factor;
by:
 (b) the sum of the market values, at the joining time, of all the joining entity's assets for which a pre‑CGT factor is to be worked out.

Note: The treatment of membership interests in an entity ceasing to be a member of the joined group as pre‑CGT assets of members of the group could be manipulated to produce too many pre‑CGT assets if the pre‑CGT factor of an asset were not limited to 1 by the above subsection.

[The next Division is Division 707.]

Division 707—Losses for head companies when entities become members etc.

Table of Subdivisions

707‑A Transfer of previously unutilised losses to head company
707‑B Can a transferred loss be utilised?
707‑C Amount of transferred losses that can be utilised
707‑D Special rules about losses

Subdivision 707‑A—Transfer of previously unutilised losses to head company

Guide to Subdivision 707‑A

707‑100  What this Subdivision is about

      A loss made but not utilised by an entity before the time it becomes a member of a consolidated group is transferred to the head company of the group at that time if the entity could have utilised the loss had the entity not become a member of the group.

Table of sections

707‑105 Who can utilise the loss?

Objects

707‑110 Objects of this Subdivision

Application

707‑115 What losses this Subdivision applies to

Transfer of loss from joining entity to head company

707‑120 Transfer of loss from joining entity to head company
707‑125 Modified same business test for companies' post‑1999 losses
707‑130 Modified pattern of distributions test
707‑135 Transferring loss transferred to joining entity because same business test was passed

Effect of transfer of loss

707‑140 Effect of transfer of loss

Cancelling the transfer of the loss

707‑145 Cancelling the transfer of the loss

What happens if the loss is not transferred?

707‑150 Loss cannot be utilised for income year ending after the joining time

707‑105  Who can utilise the loss?

 (1) If