Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:1_1:p2
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 2/2)
Character Range: 17235–19042

reduction amount) had not again been distributed by the recipient of the further distribution;
 (ii) the recipient of the further distribution does not become a *subsidiary member of the group at the formation time; or
 (b) the following happen:
 (i) by the formation time, any of the further distribution (the eligible reduction amount) had been distributed by the recipient of the further distribution to another entity directly, or indirectly though successive distributions by interposed entities;
 (ii) that other entity does not become a subsidiary member of the group at the formation time; or
 (c) both of the above paragraphs apply;
then, in working out the group's *allocable cost amount for the subject entity, the reduction under step 4 in the table in section 705‑60 for the subject distribution only takes place to the extent that it equals the sum of all eligible reduction amounts.

Step 1 reduced cost base adjustment to reverse effect of reduction for further distribution

 (6) Also, if subsection 160ZK(5) of the Income Tax Assessment Act 1936 or subsection 110‑55(7) of this Act applied to the further distribution, then for the purposes of step 1 in the table in section 705‑60 in working out the group's *allocable cost amount for the subject entity:
 (a) the reference in subsection 705‑65(3) to a reduction resulting from the application of subsection 160ZK(5) of the Income Tax Assessment Act 1936; and
 (b) the reference in subsection 705‑65(5) to a reduction that has taken place under subsection 110‑55(7);
include a reference to the reduction in the *reduced cost base of the membership interest in the subject entity resulting from the application of subsection 160ZK(5) of the Income Tax Assessment Act 1936, or subsection 110‑55(7) of this Act, to the further distribution.