Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 7/66)
Character Range: 6343070–6345982

its *associates in another entity, take into account:
 (a) a particular *direct participation interest; or
 (b) a particular *indirect participation interest;
held in the other entity only once if it would otherwise be counted more than once because the entity holding it is an associate of the control entity.
 (3) The following provisions do not apply to the joining entity's assets in respect of the joining entity becoming a *subsidiary member of the group:
 (a) section 701‑10 (cost to head company of assets of joining entity);
 (b) subsection 701‑35(4) (setting value of trading stock at tax‑neutral amount);
 (c) subsection 701‑35(5) (setting value of registered emissions unit at tax‑neutral amount).
Note: This subsection does not affect the application of subsection 701‑1(1) (the single entity rule).
 (4) Subsection (5) applies if:
 (a) an entity (the higher level entity) holds *membership interests in the joining entity (whether directly or through one or more interposed entities) at a time during the period mentioned in paragraph (1)(b); and
 (b) the higher level entity becomes a *subsidiary member of the *consolidated group at the joining time; and
 (c) the requirement in paragraph (1)(b) is not satisfied (disregarding subsection (5)); and
 (d) the requirement in paragraph (1)(b) would be satisfied if the reference in paragraph (1)(b) to membership interests in the joining entity included a reference to membership interests in the higher level entity.
 (5) Treat the reference in paragraph (1)(b) to *membership interests in the joining entity as including a reference to membership interests in the higher level entity.

Subdivision 716‑V—Research and Development

Table of sections
716‑500 Head company bound by agreements binding on subsidiary members
716‑505 History for entitlement to tax offset: joining entity
716‑510 History for entitlement to tax offset: leaving entity

716‑500  Head company bound by agreements binding on subsidiary members
  Section 355‑220 (about R&D activities conducted for a foreign entity) applies to the *head company of a *consolidated group as if the head company were bound by an agreement during any period that a *subsidiary member of the group is bound by the agreement.

716‑505  History for entitlement to tax offset: joining entity
  If:
 (a) a company becomes a *subsidiary member of a *consolidated group; and
 (b) apart from this section, things happening in relation to the company before it became a subsidiary member would, because of section 701‑5 (the entry history rule), be taken into account as things happening in relation to the *head company for working out the head company's *aggregated turnover for the purposes of section 355‑100 (tax offsets for R&D);
the things happening are not to be taken into account as mentioned in paragraph (b).

716‑510  History for entitlement to tax offset: leaving entity
  If:
 (a) a company