Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_89:p2
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 89 (pt 2/2)
Character Range: 268149–269725

member of a *consolidated group at a time (the leaving time); and
 (b) but for the cessation of membership and section 701‑40 (the exit history rule):
 (i) an amount would be included in the assessable income of the *head company of the group under section 701‑61 for an income year ending after the leaving time; or
 (ii) the head company of the group would be entitled to a deduction under section 701‑61 for an income year ending after the leaving time.
 (4) Despite section 701‑40 (the exit history rule), the amount is included in the assessable income of the *head company for the income year, or the head company is entitled to the deduction for the income year.

715‑385  Exit history rule and elective methods applying to Division 230 financial arrangements
 (1) Subsection (2) applies if:
 (a) an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) the *head company of the group has a *Division 230 financial arrangement at the leaving time because the leaving entity is taken by subsection 701‑1(1) (the single entity rule) to be a part of the head company; and
 (c) after the leaving time, the leaving entity makes an election of a kind mentioned in section 230‑220 (fair value method), 230‑265 (foreign exchange retranslation method), 230‑325 (hedging method) or 230‑410 (reliance on financial reports method).
 (2) For the purposes of determining whether the election applies to the financial arrangement, disregard paragraphs 230‑220(1)(d), 230‑265(1)(d), 230‑325(a) and 230‑410(1)(b)).