Document ID: chunk:federal_register_of_legislation:C2010C00603:clause:1_2:p5
Version: federal_register_of_legislation:C2010C00603
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 5/5)
Character Range: 39383–40937

affecting the joining entity's terminating value for the software, which section 705‑30 defines as being the adjustable value of the software just before the joining time, and which is relevant to sections 705‑40, 705‑50 and 705‑57 (which may reduce the tax cost setting amount for the software);

(c) another way is by affecting section 705‑50, whose operation depends on the decline in value, and deductions for the decline in value, of the software (among other things).

Software development pools if entity leaves consolidated group

716‑345  Head company taken not to have incurred expenditure

 (1) This section has effect if:
 (a) an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a time in an income year (the leaving year); and
 (b) under section 701‑40 (Exit history rule), expenditure is taken to have been allocated by the leaving entity to a software development pool.

Note: Section 701‑40 treats expenditure incurred by the head company of the consolidated group and allocated by that company to a software development pool as having been incurred by the leaving entity and allocated by it to a software development pool.

 (2) Work out deductions of the *head company of the *consolidated group for income years after the leaving year as if the head company had not incurred the expenditure.

 (3) The leaving entity cannot deduct an amount for the leaving year for the expenditure it is taken to have allocated to the software development pool.

Income Tax (Transitional Provisions) Act 1997