Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:1_10:p2
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 2/2)
Character Range: 28338–29682

step 5 in the table in section 705‑60 (about losses accruing before becoming a subsidiary member of the group);
then, for the purposes of working out under section 705‑35 the *tax cost setting amount for the assets of the first linked entity, the *market value of the first linked entity's membership interests in the second linked entity is reduced (in a subparagraph (c)(i) case) or increased (in a subparagraph (c)(ii) case) by the first linked entity's interest in the third linked entity's profit/loss adjustment amount (see subsection (5)).

First linked entity's interest in third linked entity's profit/loss adjustment amount

 (5) The first linked entity's interest in the third linked entity's profit/loss adjustment amount is worked out using the formula:
where:

market value of first linked entity's membership interests in third linked entity held through second linked entity means the *market value of all *membership interests in the third linked entity that the first linked entity holds indirectly through the second linked entity (including through that entity and one or more other linked entities that are interposed between the second linked entity and the third linked entity).

Part 4—Adjustment to allocable cost amount for certain pre‑joining time roll‑overs from foreign residents

Income Tax Assessment Act 1997