Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:7_2:p4
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 7 cl 2 (pt 4/9)
Character Range: 74007–77007

in relation to the sub‑group; and
 (d) only the following proportion of each of the step 2 to step 7 amounts in the table in section 705‑60 was taken into account:

  where:
  market value of all membership interests in non‑chosen subsidiary means the market value, at the time the group comes into existence, of all membership interests in the non‑chosen subsidiary that are held by entities that become members of the group at that time.
  market value of chosen transitional entity's direct and indirect membership interests in non‑chosen subsidiary means the market value, at the time the group comes into existence, of all membership interests in the non‑chosen subsidiary that the chosen transitional entity holds directly or indirectly through interposed entities that are included in the sub‑group.

Sub‑group and sub‑group membership interests
 (6) If a chosen transitional entity holds membership interests in a non‑chosen subsidiary, either directly or indirectly through one or more other entities, each of which is a non‑chosen subsidiary:
 (a) the chosen transitional entity and each interposed non‑chosen subsidiary comprise a sub‑group in relation to the non‑chosen subsidiary (unless the non‑chosen subsidiary is included in a sub‑group in relation to another non‑chosen subsidiary); and
 (b) the following membership interests are the sub‑group membership interests in relation to the sub‑group:
 (i) the membership interests that the chosen transitional entity holds directly in the non‑chosen subsidiary or in any of the interposed non‑chosen subsidiaries;
 (ii) the membership interests that each interposed non‑chosen subsidiary holds directly in the non‑chosen subsidiary or in any of the other interposed non‑chosen subsidiaries.

701‑25  No operation of value shifting and loss transfer provisions to membership interests in chosen transitional entities
  If any provision of this Act would, because of events that happened before the time the transitional group came into existence, apply to a CGT event that happens after that time to change the cost base or reduced cost base of the members' membership interests in a chosen transitional entity, the provision does not so apply.
Note: For example, such a provision could otherwise apply where a loss transfer or value shift involving the entity has occurred.

701‑30  Undistributed, unfrankable pre‑formation profits of non‑chosen transitional entities—adjustment to allocable cost amount and tax cost setting amount reduction for over‑depreciated assets

Application of section to non‑chosen transitional entities where transitional group formed before 1 July 2003
 (1) This section applies if the transitional group comes into existence before 1 July 2003. It applies to each transitional entity in the transitional group, other than a chosen transitional entity. This is so even if there are no chosen transitional entities at all.

Increase in step 3 of allocable cost amount on group formation
 (2) The amount to be