Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 20/30)
Character Range: 6194788–6197500

has deferred losses under Subdivision 170‑D on assets that it formerly owned. Subdivision 715‑D gives effect to the purposes of Subdivision 165‑CC if such an entity becomes a member of a consolidated group.
 (2) This Subdivision achieves its object by supplementing and modifying the application of Subdivision 165‑CC to take account of how the rest of this Part treats *members of a *consolidated group (in particular the provisions about entities becoming or ceasing to be members).

Effect on Subdivision 165‑CC of a company becoming a member of a consolidated group

715‑25  Subdivision 165‑CC stops applying to earlier changeover time
 (1) At and after the time (the membership time) when a company becomes a *member of a *consolidated group, Subdivision 165‑CC does not apply to the company in relation to a *changeover time that happened before the membership time, except for the purposes of section 715‑30 (which defines 165‑CC tagged asset).
Note 1: Subdivision 165‑CC is about change of ownership or control of a company that has an unrealised net loss.
Note 2: If the company has 165‑CC tagged assets at the membership time, there are further consequences under this Subdivision and Subdivision 715‑D.
 Also, Subdivision 165‑CC can apply to the head company of the group in relation to a changeover time that happens for it at or after the membership time. See section 715‑75.
 (2) Subsection (1) continues to have effect even if the company later stops being a *member of the group.

715‑30  Meaning of 165‑CC tagged asset
  A *CGT asset is a 165‑CC tagged asset of a company at a particular time if, and only if:
 (a) that time is at or after the most recent *changeover time (if any) for the company; and
 (b) at that changeover time, the company had an unrealised net loss under section 165‑115E; and
 (c) the asset is covered by subsection 165‑115A(1A) as applying to that changeover time; and
 (d) the company would not, at that changeover time, satisfy the maximum net asset value test under section 152‑15; and
 (e) if the company has chosen under subsection 165‑115A(1B) in relation to that changeover time—the company *acquired the asset for $10,000 or more.

715‑35  Meaning of final RUNL
  A company's final RUNL at a particular time (the test time) is the amount that would have been the company's *residual unrealised net loss at the time of:
 (a) if no event that subsection 165‑115BB(2) refers to as a relevant event actually happens at the test time—a notional event of that kind happening at the test time; or
 (b) otherwise—a notional event of that kind that happens at the test time, and that the company determines under paragraph 165‑115BB(1)(b) to have happened later than each