Document ID: chunk:federal_register_of_legislation:C2012C00706:clause:3_22
Version: federal_register_of_legislation:C2012C00706
Segment Type: clause
Provision Reference: sch 3 cl 22
Character Range: 83907–85070

22  After section 705‑56
Insert:

705‑56A  Modification for tax cost setting in relation to certain rights to future income
 (1) This section applies if, just before the joining time:
 (a) the joining entity *holds an asset; and
 (b) under the terms of a contract or agreement, the joining entity holds a *right to future income arising from the asset; and
 (c) the right to future income is not a *non‑deductible right to future income in relation to the joining entity.
 (2) Subsection (3) applies if the sum of:
 (a) the *market value of the asset at the joining time (having regard to the *right to future income); and
 (b) the market value of the right to future income at the joining time;
exceeds the market value of the asset at the joining time (disregarding the right to future income).
 (3) For the purposes of paragraph 705‑35(1)(c), treat the *market value of the *right to future income as the excess mentioned in subsection (2).
 (4) If subsection (3) does not apply:
 (a) the *right to future income is not taken into account under paragraph 705‑35(1)(b) or (c); and
 (b) the right to future income's *tax cost setting amount is taken to be nil.