Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_6:p2
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 6 (pt 2/14)
Character Range: 136054–138785

the *loss denial balance becomes nil; or
 (c) when the entity becomes a *subsidiary member of a *consolidated group; or
 (d) as mentioned in subsection 715‑135(4).

[The next section is section 715‑175.]

Choices under this Subdivision

715‑175  When choice must be made

 (1) A choice under section 715‑95 or 715‑120 must be made within 6 months after the leaving time, or within a further period allowed by the Commissioner.

 (2) After that 6 months, or that further period, the head company is taken to have made the first choice under section 715‑100 or 715‑125 unless it is established that the head company made a different choice within that 6 months or further period.

715‑180  Head company to notify leaving entity of choice

 (1) Within one month after making a choice under section 715‑95 or 715‑120, or within a further period allowed by the Commissioner, the head company must give the leaving entity written notice of the choice.

 (2) If the choice is to have a *loss denial pool of the leaving entity created at the leaving time, the notice must also specify the pool's *loss denial balance at that time.

715‑185  Leaving entity may choose to cancel loss denial pool by reducing adjustable values of assets in the pool

 (1) Within 6 months after a *loss denial pool is created under section 715‑110 or 715‑135, or within a further period allowed by the Commissioner, the leaving entity may choose to be treated as if the *head company had instead made:
 (a) the first choice under section 715‑100 or 715‑125; or
 (b) the second choice under section 715‑105 or 715‑130;
as specified by the leaving entity in its choice.

 (2) If the leaving entity makes a choice under subsection (1):
 (a) the *loss denial pool ceases to exist just after the leaving time; and
 (b) at the leaving time, the *adjustable value of each *CGT asset in the pool is reduced to what it would have been at that time if the head company had instead made the choice specified by the leaving entity in its choice.

 (3) The choice by the leaving entity does not affect how subsection 715‑135(4) applies to the *head company.

Note: This means that the head company's loss denial pool still ceases to exist.

Subdivision 715‑B—How Subdivision 165‑CD applies to consolidated groups and leaving entities

Table of sections

How Subdivision 165‑CD applies to consolidated groups

715‑215 Extension of single entity rule and entry history rule
715‑225 Working out adjusted unrealised loss using individual asset method
715‑230 No reductions or other consequences for interests subject to loss cancellation under Subdivision 715‑H

How Subdivision 165‑CD applies to leaving entity that is a company

715‑240 Application of sections 715‑245