Document ID: chunk:federal_register_of_legislation:C2011C00698:clause:5_36
Version: federal_register_of_legislation:C2011C00698
Segment Type: clause
Provision Reference: sch 5 cl 36
Character Range: 85046–86948

36  After section 705‑60
Insert:

705‑62  No double counting of amounts in allocable cost amount

 (1) The object of this section is to prevent a particular amount from being taken into account more than once in calculating the *allocable cost amount for the joining entity, in order to promote the object of this Subdivision set out in section 705‑10.

 (2) Subsection (3) applies if, apart from this section, 2 or more provisions of this Act operate with the result of altering:
 (a) the *allocable cost amount for the joining entity; or
 (b) the allocable cost amount for another entity that becomes a *subsidiary member of the group at the joining time;
because of a particular economic attribute of the joining entity (see subsection (6)).

 (3) Only one of those alterations is to be made, as follows:
 (a) if the *head company of the group makes a choice in accordance with subsections (4) and (5)—the alteration specified in the choice is to be made;
 (b) otherwise—the alteration that is most appropriate (in the light of the object of this Subdivision) is to be made.

 (4) A choice mentioned in paragraph (3)(a) must be made:
 (a) by the day the *head company of the group lodges its *income tax return for the income year in which the joining time occurs; or
 (b) within a further time allowed by the Commissioner.

 (5) A choice mentioned in paragraph (3)(a) must be made in writing.

 (6) The economic attributes of the joining entity mentioned in subsection (2) include the following:
 (a) the joining entity's retained profits;
 (b) the joining entity's distributions of profits to other entities;
 (c) the joining entity's realised and unrealised losses;
 (d) the joining entity's deductions;
 (e) the joining entity's accounting liabilities (within the meaning of subsection 705‑70(1));
 (f) consideration received by the joining entity for issuing *membership interests in itself.