Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 13/19)
Character Range: 6312636–6315225

consolidated group.
Note 2: If throughout the income year the entity is not a subsidiary member of any consolidated group or MEC group, this section does not affect the entity's ability to deduct the original amount for the income year either:
• because the entity is the entity referred to in subsection (1); or
• because of section 701‑40 (Exit history rule).
 (5) The proportion is worked out by multiplying the original amount by:
• the number of days that are in both the non‑membership period and the *spreading period;
divided by:
• the number of days that are in the spreading period.

Spreading period
 (6) The spreading period for the original amount:
 (a) starts when, apart from this Part, an entity would become entitled to deduct the amount for an income year; and
 (b) ends at the end of the income year.

Assessable income and deductions arising from share of net income of a partnership or trust, or from share of partnership loss

716‑75  Application
  Sections 716‑80 to 716‑100 apply if, apart from this Part:
 (a) an amount would be included in an entity's assessable income for an income year under section 92 (about income and deductions of partner) of the Income Tax Assessment Act 1936 in respect of a partnership; or
 (b) an entity could deduct an amount for an income year under section 92 of that Act in respect of a partnership; or
 (c) an amount would be included in an entity's assessable income for an income year under section 97 (Beneficiary of a trust estate who is not under a legal disability) of that Act in respect of a trust; or
 (d) an amount would be included in an entity's assessable income for an income year under section 98A (Non‑resident beneficiaries assessable in respect of certain income) of that Act in respect of a trust.

716‑80  Head company's assessable income and deductions
 (1) If for some but not all of the income year the entity is a *subsidiary member of a *consolidated group or *MEC group:
 (a) the assessable income for that income year of the head company of the group includes the entity's share (worked out under section 716‑90) of each of these:
 (i) the total assessable income of the partnership or trust for the income year so far as it is reasonably attributable to a period, during the income year, throughout which the entity was a *subsidiary member of the group but the partnership or trust was not;
 (ii) a proportion (worked under subsection (2) of this section) of the total assessable income of the partnership or trust for the income year so far as it is not reasonably attributable to a particular period