Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p4
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 4/20)
Character Range: 104514–107134

by the joining entity before the joining time that:
 (a) the *head company receives directly, or would receive indirectly if entities interposed between the head company and the joining entity successively distributed any distribution they received immediately after receiving it; and
 (b) were made out of profits:
 (i) that did not accrue to the joined group before the joining time (see subsection 705‑90(5)); or
 (ii) that accrued to the joined group before the joining time and recouped losses of any *sort that accrued to the joined group before that time (see subsection 705‑90(4)).

705‑100  Losses accruing to joined group before joining time—step 5 in working out allocable cost amount

 (1) For the purposes of step 5 in the table in section 705‑60, the step 5 amount is the sum of all losses of any *sort of the joining entity that:
 (a) had not been *utilised by the joining entity for the income year in which the joining time occurred or any earlier income year; and
 (b) accrued to the joined group before the joining time (see subsection 705‑90(4)).

 (2) However, a loss is not to be taken into account under subsection (1) to the extent that, in applying subsection 705‑90(2) for the purpose of working out the step 3 amount in the table in section 705‑60, the loss reduced the amount of the undistributed profits mentioned in that subsection.

705‑105  Continuity of holding membership interests—steps 3 to 5 in working out allocable cost amount

  If:
 (a) a *membership interest that a *member of the joined group held in the joining entity at the joining time was taken under this Act to have been *acquired by the member for its *market value at a particular time (the market value time); or
 (b) the *cost base and *reduced cost base of a membership interest that a member of the joined group held in the joining entity at the joining time were, before that time, changed on one or more occasions by this Act so that they equalled the market value of the membership interest at a particular time (the last of which times is also the market value time);
then, for the purpose of sections 705‑90, 705‑95 and 705‑100, the *head company is taken not to have held that membership interest, either directly or indirectly, before the market value time.

705‑110  If joining entity transfers a loss to the head company—step 6 in working out allocable cost amount

 (1) For the purposes of step 6 in the table in section 705‑60, the step 6 amount is worked out by multiplying the sum of the losses mentioned in subsection (2) by the *general company tax rate.

 (2) The losses are the joining entity's