Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 2/13)
Character Range: 6090373–6092914

asset's *tax cost was set at the *tax cost setting amount when an entity (whether the leaving entity or another entity) became a *subsidiary member of the old group; and
 (c) the tax cost setting amount for the asset was reduced because of section 705‑47 (which is about certain assets that were *privatised assets);
the amount of the reduction is added to the step 1 amount.

Increase in step 1 amount for certain privatised assets
 (4) If:
 (a) the *head company of the old group *holds a *depreciating asset at the leaving time because the leaving entity is taken by subsection 701‑1(1) (the single entity rule) to be a part of the head company; and
 (b) the first element of the *cost of the asset was worked out by reference to subsection 58‑70(5) because a *member of the old group acquired the asset as described in subsection 58‑5(4) on or after 1 July 2002; and
 (c) the amount of the first element of the cost of the asset is less than the amount it would have been apart from item 11 of the table in subsection 40‑180(2) (which makes subsection 58‑70(5) relevant to working out that element);
the difference between the amounts is added to the step 1 amount.

711‑30  What is the head company's terminating value for an asset?
 (1) The *head company's terminating value for an asset that it holds at the leaving time because the leaving entity is taken by subsection 701‑1(1) to be a part of the head company is worked out as follows.
 (2) The amount is worked out by applying section 705‑30 in a corresponding way to the way that section applies to work out the *terminating value for an asset that a joining entity holds at the joining time.
 (3) However, that amount is the asset's *market value at the leaving time if:
 (a) the asset is a right to receive lease payments under a lease; and
 (b) the asset's *tax cost was set when an entity (whether the leaving entity or another entity) became a *subsidiary member of the old group; and
 (c) the asset was taken to be a *retained cost base asset for the purposes of Division 705 when its tax cost was set, because of paragraph 705‑56(3)(b).

711‑35  If head company becomes entitled to certain deductions—step 2 in working out allocable cost amount
 (1) Work out the step 2 amount for the purposes of the table in subsection 711‑20(1) by multiplying all deductions covered by subsection (2) by the *corporate tax rate.
 (2) This subsection covers any deduction to which the leaving entity becomes entitled under section 701‑40 as a result of the leaving entity ceasing to be a