Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_2:p15
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 15/21)
Character Range: 90749–93699

subsidiary member leaving consolidated group

  A balancing adjustment is not made under section 250‑275 in relation to a subsidiary member of a*consolidated group or a *MEC group that has the *financial arrangement ceasing to be a member of the group.

250‑275  Balancing adjustment

Complete cessation or transfer

 (1) Use the following method statement to make the balancing adjustment if paragraph 250‑265(1)(a) or (b) applies:

      Method statement for balancing adjustment
           Step 1. Add up the following:

                (a) the total of all the *financial benefits provided to you under the *financial arrangement;
                (b) the amount or value of any other consideration you receive in relation to the transfer or cessation referred to in subsection 250‑265(1);
                (c) the total of the amounts that have been allowed to you as deductions, because of circumstances that have occurred before the transfer or cessation, for losses from the arrangement;
                (d) the total of the other amounts that would have been allowed to you as deductions, because of circumstances that have occurred before the transfer or cessation, for losses from the arrangement if all your losses from the arrangement were allowable as deductions.

           Step 2. Add up the following:

                (a) the total of all the *financial benefits you have provided under the *financial arrangement;
                (b) the amount or value of any other consideration you provide in relation to the transfer or cessation referred to in subsection 250‑265(1);
                (c) the total of the amounts that have been included in your assessable income, because of circumstances that have occurred before the transfer or cessation, as gains from the arrangement;
                (d) the total of the other amounts that would have been included in your assessable income, because of circumstances that have occurred before the transfer or cessation, as gains from the arrangement if all your gains from the arrangement were assessable.

           Step 3. Compare the amount obtained under Step 1 (the Step 1 amount) with the amount obtained under Step 2 (the Step 2 amount). If the Step 1 amount exceeds the Step 2 amount, an amount equal to the excess is taken, as a balancing adjustment, to be a gain you make from the *financial arrangement for the purposes of this Subdivision. If the Step 2 amount exceeds the Step 1 amount, an amount equal to the excess is taken, as a balancing adjustment, to be a loss that you make from the arrangement. If the Step 1 amount and the Step 2 amount are equal, no balancing adjustment is made.

Proportionate transfer of all rights and/or obligations under financial arrangement

 (2) If subparagraph 250‑265(1)(c)(i) applies, you make the balancing adjustment by applying the method statement in subsection (1) but reduce:
 (a) the amounts referred to in paragraphs (a),