Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 2/30)
Character Range: 6148928–6151618

*tax cost setting amount is equal to the partner's individual share of the *terminating value of the partnership asset to which the *partnership cost setting interest relates.
Note: For income tax purposes there is no disposal by the head company of any assets of the partnership when it ceases to be a subsidiary member of the group.

Multiple exit case—tax cost setting amounts for both partnership cost setting interests in partnership and membership interests in other entities
 (5) If the partnership is one of 2 or more entities that cease to be *subsidiary members of the old group at the same time because of an event happening in relation to one of them, apply section 711‑55 as if:
 (a) except in paragraph 711‑55(3)(a), a reference to *membership interests in an entity, or to the *tax cost setting amount for such interests, where the entity is the partnership, were a reference to *partnership cost setting interests in the partnership, or to the tax cost setting amount for such interests; and
 (b) paragraph 711‑55(3)(a) were replaced by a requirement that, where the entity in which the membership interests mentioned in subsection 711‑55(3) are held is the partnership, subsection (4) of this section is to be applied in working out the tax cost setting amount of the partnership cost setting interests in the partnership.

713‑260  Partnership leaves group—tax cost setting amount for assets consisting of being owed certain liabilities
 (1) This section applies if:
 (a) when the partnership ceases to be a *subsidiary member of the group, a partner remains a *member of the group; and
 (b) an asset becomes an asset of the *head company because subsection 701‑1(1) (the single entity rule) ceases to apply to the partnership when it ceases to be a subsidiary member; and
 (c) the asset is, ignoring that subsection:
 (i) the partner's interest in an asset of the partnership consisting of a liability of a member of the group owed to the partnership; or
 (ii) the partner's share of a liability of the partnership owed to a member of the group.
 (2) The asset's *tax cost is set at the leaving time at a *tax cost setting amount equal to the *market value of the asset.

713‑265  Partnership leaves group—adjustments to allocable cost amount of partner who also leaves group
 (1) This section has effect in working out the group's *allocable cost amount for a partner in the partnership, if the partner ceases to be a *subsidiary member of the group at the leaving time.
 (2) Section 711‑35 operates as if:
 (a) a deduction to which the partnership becomes entitled (the partnership deduction) were a deduction to which the partner becomes entitled, to the extent of the