Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_6:p14
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 6 (pt 14/14)
Character Range: 165959–167757

is a *membership interest; and
 (b) during the ownership period the first entity ceased to be a *subsidiary member of a *consolidated group;
the first condition in section 715‑610 cannot be satisfied, because of that consolidated group, at a time when the first entity was a member of the group, unless the interest needed to be disregarded under section 703‑35 (about employee shares) in order for the first entity to be a member of the group at that time.

Liabilities owed by leaving entity

 (2) If the realised interest:
 (a) consists of a liability owed by the first entity to the owner; and
 (b) became an asset of the owner because subsection 701‑1(1) (the single entity rule) ceased to apply to the first entity when it ceased to be a *subsidiary member of a *consolidated group;
the first condition in section 715‑610 cannot be satisfied, because of that consolidated group, at a time when the first entity was a member of the group.

715‑620  Exception if loss attributable to certain matters

 (1) The loss is not reduced if all of it can be shown to be attributable to things other than these:
 (a) something that would be reflected in what would, apart from this Part, be an overall loss under section 165‑115R or 165‑115S, of a *member of a *consolidated group (an excluded group) because of which the first condition in section 715‑610 is satisfied, at an *alteration time for that member;
 (b) an *indirect value shift for which, apart from this Part, a member of an excluded group would be the *losing entity or the *gaining entity.

 (2) If only part of the loss can be shown to be attributable to things other than the ones listed in subsection (1), the loss is reduced to the amount of that part.

Part 2—New Subdivision 719‑T inserted in the Income Tax Assessment Act 1997