Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 2/3)
Character Range: 6279809–6282404

an election that was relevant to working out the party's liability (if any) for income tax, or the party's *tax loss (if any), for an income year in connection with the contract; or
 (ii) as if the head company had not made such an election, if the contracting party had not made such an election that was relevant to working out the party's liability (if any) for income tax, or the party's tax loss (if any), for an income year in connection with the contract.

Choice replacing inconsistency
 (5) If:
 (a) the question whether the *head company of the *consolidated group has made a choice (however described) under the choice provision is relevant for the head company core purposes set out in section 701‑1 (Single entity rule); and
 (b) there is a limit (outside this section) on the period within which the head company may make such a choice;
the head company has until the later of these times to make such a choice:
 (c) the last time the head company may make the choice (apart from this subsection);
 (d) the end of 90 days after the Commissioner is given notice under Division 703 that the joining entity has become a *member of the group or, if the Commissioner allows a later time for the purposes of this paragraph, that later time.
Note: If the joining time is when the consolidated group is formed, the Commissioner should be given notice under Division 703 that the joining entity has become a member of the group when the approved form of the choice to form the group is given to the Commissioner.

When head company's choice starts to have effect
 (6) If the *head company of the *consolidated group makes a choice (however described) under the choice provision as a result of becoming able to make the choice because the joining entity became a *member of the group, the choice starts to have effect:
 (a) at the joining time; or
 (b) if the choice relates (explicitly or implicitly) to one or more whole income years—for the income year in which the joining time occurs.
 (7) However, if:
 (a) the *head company of the *consolidated group makes a choice as described in subsection (6); and
 (b) the choice is an election under section 148 of the Income Tax Assessment Act 1936 (Reinsurance with non‑residents);
the election has effect only for the purposes of that section applying in relation to reinsurance under contracts made after the joining time and in an income year for which the election applies under that section.
Note: Subsection (4) explains how section 148 of the Income Tax Assessment Act 1936 applies in relation to reinsurance under contracts made before