Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p95
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 95/95)
Character Range: 5789544–5792068

subsection 701‑1(1) (the single entity rule) did not apply.
 (1A) Subsection (2) applies only to the extent necessary for the purposes of subsection 701‑55(6) to determine whether a provision of this Act is to apply in relation to each of those assets on and after the joining time.
 (1B) Subsection (2) applies despite section 701‑5 (the entry history rule).
 (2) Treat the *head company as having acquired each of those assets at the joining time as part of acquiring the business of the joining entity as a going concern.

Certain depreciating assets etc.
 (3) Subsection 701‑55(6) does not apply in relation to an asset if any of the following provisions are to apply in relation to the asset:
 (a) Subdivision 40‑F (Primary production depreciating assets);
 (b) Subdivision 40‑G (Capital expenditure of primary producers and other landholders);
 (c) Subdivision 40‑H (Capital expenditure that is immediately deductible);
 (d) Subdivision 40‑I (Capital expenditure that is deductible over time);
 (e) Subdivision 40‑J (Capital expenditure for the establishment of trees in carbon sink forests);
 (f) Division 41 (Additional deduction for certain new business investment);
 (g) Division 43 (Deductions for capital works).

701‑58  Effect of setting the tax cost of an asset that the head company does not hold under the single entity rule
 (1) This section applies if:
 (a) the *tax cost of an asset was set at the time (the joining time) an entity became a *subsidiary member of a *consolidated group, at the asset's *tax cost setting amount; and
 (b) ignoring the operation of subsection 701‑1(1) (the single entity rule), the entity held the asset at the joining time; and
 (c) taking into account the operation of subsection 701‑1(1) (the single entity rule), the *head company of the group did not hold the asset at the joining time.
Example: A debt owed by a member of the group to the joining entity at the joining time.
 (2) To avoid doubt, the asset's *tax cost setting amount mentioned in paragraph (1)(a) is not to be taken into account in applying the provisions mentioned in subsections 701‑55(2), (3) (3A),, (4), (5), (5A), (5C), (5D) and (6) in relation to the asset at and after the joining time.

701‑60  Tax cost setting amount
  The asset's tax cost setting amount is worked out using this table.

Tax cost setting amount
Item                     If the asset's tax cost is set by:                                                                                  The asset's tax cost setting amount is: