Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_87
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 87
Character Range: 263983–265018

87  After section 701‑60
Insert:

701‑61  Assets in relation to Division 230 financial arrangement—head company's assessable income or deduction
 (1) This section applies if:
 (a) an entity (the joining entity) becomes a *subsidiary member of a *consolidated group; and
 (b) paragraph 701‑55(5A)(b) applies in relation to one or more assets of the joining entity.
 (2) Work out if the total of the *Division 230 starting values for those assets exceeds or falls short of the total of their *tax cost setting amounts.
 (3) If there is an excess, an amount equal to 25% of that excess is included in the *head company's assessable income for:
 (a) the income year in which the particular time mentioned in subsection 701‑55(5A) occurs; and
 (b) each of the 3 subsequent income years.
 (4) If there is a shortfall, the *head company is entitled to a deduction equal to 25% of that shortfall for:
 (a) the income year in which the particular time mentioned in subsection 701‑55(5A) occurs; and
 (b) each of the 3 subsequent income years.