Document ID: chunk:federal_register_of_legislation:C2010C00261:clause:4_5:p2
Version: federal_register_of_legislation:C2010C00261
Segment Type: clause
Provision Reference: sch 4 cl 5 (pt 2/2)
Character Range: 22046–23773

the necessary connection with Australia (within the meaning of this Act as in force on that day) disregarding the operation of paragraph (b) of item 5 and paragraph (b) of item 6 of the table in section 136‑25 (as in force on that day).

 (4) Also, Parts 3‑1 and 3‑3 apply to the asset as if you had *acquired it on that day.

855‑30  Principal asset test

 (1) The purpose of this section is to define when an entity's underlying value is principally derived from Australian real property (see paragraph 855‑5(2)(b)).

 (2) A *membership interest held by an entity (the holding entity) in another entity (the test entity) passes the principal asset test if the sum of the *market values of the test entity's assets that are *taxable Australian real property exceeds the sum of the *market values of its assets that are not taxable Australian real property.

 (3) For the purposes of subsection (2), treat an asset of an entity (the first entity) that is a *membership interest in another entity (the other entity) as if it were instead the following 2 assets:
 (a) an asset that is *taxable Australian real property (the TARP asset);
 (b) an asset that is not taxable Australian real property (the non‑TARP asset).

 (4) For the purposes of subsection (2), treat the *market value of the TARP asset and the non‑TARP asset according to the following table.

Market value of the TARP asset and the non‑TARP asset
Item                                                   If:                                                                                             the market value of the TARP asset is:                                                                                   the market value of the non‑TARP asset is: