Document ID: chunk:federal_register_of_legislation:C2010C00499:clause:5_1:p2
Version: federal_register_of_legislation:C2010C00499
Segment Type: clause
Provision Reference: sch 5 cl 1 (pt 2/2)
Character Range: 28441–30919

the Income Tax Assessment Act 1936) in respect of the 2001‑02 income year or an earlier income year; and
 (b) the amount of the overall foreign loss has not been fully taken into account under one or more applications of section 160AFD of the Income Tax Assessment Act 1936 to the transitional foreign loss maker in relation to an income year or income years ending before the transitional time; and
 (c) assuming that the transitional foreign loss maker had become a subsidiary member of a consolidated group at the formation time, as a result all or part of the overall foreign loss would have been transferred at that time 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) paragraph 126‑50(6)(b) 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(2)(c)(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 end of the period described in subsection 703‑50(3) of the Income Tax Assessment Act 1997 for giving the Commissioner the choice under section 703‑50 of that Act that the group is taken to be consolidated; and
 (b) 30 days after the Taxation Laws Amendment Act (No. 1) 2004 received the Royal Assent.

 (4) The choice cannot be revoked.