Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 2/4)
Character Range: 6079336–6082165

way as they apply in relation to the writing off of a debt as bad.
 (3) Subsection 709‑215(1):
 (a) applies in relation to a swap loss from a debt/equity swap in the same way as it applies in relation to a debt, or part of a debt; and
 (b) applies as if paragraph 709‑215(1)(a) referred to subsection 63E(3) of the Income Tax Assessment Act 1936 instead of sections 8‑1 and 25‑35.
 (4) This section has effect despite subsection 63E(5) of the Income Tax Assessment Act 1936.

Division 711—Tax cost setting amount for membership interests where entities cease to be subsidiary members of consolidated groups

Guide to Division 711

711‑1  What this Division is about
      If an entity ceases to be a subsidiary member of a consolidated group, the tax cost setting amount for the group's membership interests in the entity reflects the group's cost for the entity's net assets.

Table of sections

Application and object of this Division
711‑5 Application and object of this Division

Tax cost setting amount for membership interests etc.
711‑10 Tax cost setting amount worked out under this Division
711‑15 Tax cost setting amount where no multiple exit
711‑20 What is the old group's allocable cost amount for the leaving entity?
711‑25 Terminating values of the leaving entity's assets—step 1 in working out allocable cost amount
711‑30 What is the head company's terminating value for an asset?
711‑35 If head company becomes entitled to certain deductions—step 2 in working out allocable cost amount
711‑40 Liabilities owed to the leaving entity by members of the old group—step 3 in working out allocable cost amount
711‑45 Liabilities etc. owed by the leaving entity—step 4 in working out allocable cost amount
711‑46 Liability arising from transfer or assignment of securitised assets
711‑55 Tax cost setting amount for membership interests where multiple exit
711‑65 Membership interests treated as having been acquired before 20 September 1985
711‑70 Additional integrity rule if membership interests treated as having been acquired before 20 September 1985 under section 711‑65—application of Division 149 to head company
711‑75 Additional integrity rule if membership interests treated as having been acquired before 20 September 1985 under section 711‑65—application of CGT event K6

Application and object of this Division

711‑5  Application and object of this Division

Application
 (1) This Division has effect:
 (a) for the head company core purposes set out in subsection 701‑1(2); and
 (b) for the entity core purposes set out in subsection 701‑1(3);
if an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group (the old group) at a particular time (the leaving time).

Object
 (2) The object of this Division is, when entities cease to be *subsidiary members, to preserve the