Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_5:p3
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 3/10)
Character Range: 154243–156944

Commissioner has made a determination under subsection 139CD(8) of the Income Tax Assessment Act 1936.

Note: Section 703‑35 of this Act and section 139CD of the Income Tax Assessment Act 1936 deal with shares acquired under arrangements for employee shareholdings.

707‑330  Losses transferred from former head company

 (1) This section has effect for working out the *available fraction for a *bundle of losses if:
 (a) an entity (the ex‑head company) becomes a *subsidiary member of a *consolidated group (the bigger group) at a time (the joining time); and
 (b) just before the joining time the ex‑head company was the *head company of another consolidated group (the old group); and
 (c) at the joining time the losses are transferred under Subdivision 707‑A from the ex‑head company to the head company of the bigger group.

 (2) Work out the ex‑head company's *modified market value or market value as if each *member of the bigger group that had been a *subsidiary member of the old group just before the joining time were a part of the ex‑head company, and not a separate member of the bigger group, when the transfer occurred.

 (3) Also, work out the ex‑head company's *modified market value as if each *subsidiary member of the old group had been a part of the ex‑head company while it was a subsidiary member of the old group.

707‑335  Limit on utilising transferred losses if circumstances change during income year

 (1) This section limits the amount of losses in a particular *bundle of losses transferred under Subdivision 707‑A that can be *utilised by the transferee for an income year if:
 (a) the losses in the bundle are transferred to the transferee from another entity after the start of the income year; or
 (b) the value of the *available fraction for the bundle changes at a time within the period (the transferee's loss‑holding period) described in subsection (2).

 (2) The transferee's loss‑holding period:
 (a) starts at the start of the income year or, if the losses in the *bundle were transferred to the transferee from another entity during the income year, at the time of the transfer; and
 (b) ends when one of these events occurs:
 (i) the income year ends;
 (ii) the transferee becomes a *subsidiary member of a *consolidated group.

 (3) The transferee cannot *utilise for the income year more of the losses than is reasonable having regard to:
 (a) the method in section 707‑310 for working out the maximum amount of the losses the transferee could utilise for the income year (apart from this section); and
 (b) the number of days in the transferee's loss‑holding period; and
 (c) the value or values of the *available fraction for the *bundle during the