Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_6:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 6 (pt 1/14)
Character Range: 133513–136318

6                                   the asset is a *revenue asset                                                                                                                                                                         the total of the amounts that would be subtracted from the gross disposal proceeds in calculating any profit or loss on disposal of the asset by the head company

 (3) If any of the choice provisions reduces at the test time the asset's *adjustable value, the thing identified for the asset under the table in subsection (2) of this section is reduced by the same amount.

 (4) Subsection (3) has effect for the purposes of working out under section 711‑30 the *head company's *terminating value for the asset at the leaving time.

[The next section is section 715‑155.]

General provisions about loss denial pools

715‑155  When asset leaves pool

  A *CGT asset leaves a *loss denial pool:
 (a) just after a *realisation event happens to the asset, unless the realisation event is the ending of an income year (in the case of an item of *trading stock); or
 (b) as mentioned in subsection 715‑120(2) (when it becomes an asset of the leaving entity).

715‑160  How loss denial balance is applied to losses realised on assets in pool

 (1) If, apart from this section, a loss would be *realised for income tax purposes by a *realisation event that happens to a *CGT asset when it is in a *loss denial pool of an entity, the loss is reduced by the lesser of:
 (a) the amount of the loss; and
 (b) the pool's *loss denial balance (as reduced by any previous reductions under section 715‑130 or this subsection);
and the loss denial balance is reduced by the same amount.

 (2) Subsection (1) applies to *realisation events in the order in which they happen. If 2 or more happen at the same time, it applies to them in whichever order the entity determines.

 (3) Subsection (1) reduces a *loss denial balance after section 715‑130 does, unless the *realisation event happens before the leaving time referred to in that section.

715‑165  When pool ceases to exist

 (1) A *loss denial pool of a company ceases to exist when there is a *changeover time for the company.

Note: The CGT assets in the pool then become subject to the application of Subdivision 165‑CC (about change of ownership or control of a company that has an unrealised net loss).

 (2) A *loss denial pool of any entity ceases to exist:
 (a) when there are no *CGT assets, and no *170‑D deferred losses, in the pool; or
 (b) just after 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