Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:1_15:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 1 cl 15 (pt 1/2)
Character Range: 32951–35741

15  After section 705‑145
Insert:

705‑147  Adjustment in working out step 3A of allocable cost amount to take account of membership interests held by subsidiary members in other such members

Object

 (1) The object of this section is to modify the effect that section 705‑93 (step 3A of allocable cost amount) has in accordance with this Subdivision so that it takes account of *membership interests that entities that become *subsidiary members hold in other such entities.

Apportionment of step 3A amount among first level interposed entities

 (2) If:
 (a) under section 705‑93, in its application in accordance with this Subdivision, there is a step 3A amount for the purpose of working out the group's *allocable cost amount for an entity (the subject entity) that becomes a *subsidiary member of the group at the formation time; and
 (b) at that time one or more entities (the first level entities), that become subsidiary members of the group and in which the *head company holds *membership interests, are interposed between the head company and the subject entity;
then the step 3A amount is apportioned among the first level entities and the subject entity on the following basis:
 (c) each first level entity has the following proportion of the step 3A amount:
  where:
  market value of all membership interests in subject entity means the *market value, at the formation time, of all *membership interests in the subject entity that are held by entities that become *members of the group at that time.
  market value of first level entity's direct and indirect membership interests in subject entity means so much of the market value of all membership interests in the subject entity (as defined above) as is attributable to *membership interests that the first level entity holds directly, or indirectly through other interposed entities that become *subsidiary members of the group at the formation time; and
 (d) the subject entity has the remainder of the step 3A amount.

Step 3A amount for assets consisting of membership interests held by subsidiary members in other subsidiary members

 (3) If:
 (a) before the formation time:
 (i) there was a roll‑over under Subdivision 126‑B (a Subdivision 126‑B roll‑over) in relation to a *CGT event that happened in relation to an asset (the roll‑over asset); or
 (ii) section 160ZZO of the Income Tax Assessment Act 1936 applied in relation to a disposal (a section 160ZZO roll‑over) of an asset (also the roll‑over asset); and
 (b) the originating company in relation to the Subdivision 126‑B roll‑over, or the transferor in relation to the section 160ZZO roll‑over, was a foreign resident; and
 (c) the recipient company in relation to the Subdivision 126‑B roll‑over, or the transferee in relation to the section 160ZZO