Document ID: chunk:federal_register_of_legislation:C2010C00603:clause:1_9:p4
Version: federal_register_of_legislation:C2010C00603
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 4/4)
Character Range: 21042–21883

The object of this section is to ensure, by reducing the adjustable value of a notional asset of the head company, that the head company cannot get both:
 (a) a deduction for the notional asset reflecting the amount of the expenditure relating to depreciating assets; and
 (b) a deduction for that amount because of the decline in value of those depreciating assets.

Reduction at joining time for expenditure on depreciating assets

 (3) The opening adjustable value of the head company's notional asset for the income year that includes the joining time is so much of the adjustable value of the joining entity's notional asset just before the joining time as does not reasonably relate to any depreciating asset.

Note: This offsets the increases in adjustable value of the head company's depreciating assets under subsection 705‑305(3).