Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe objects of this Part are:
(a) to prevent double taxation of the same economic gain realised by a consolidated group; and
(b) to prevent a double tax benefit being obtained from an economic loss realised by a consolidated group; and
(c) to provide a systematic solution to the prevention of such double taxation and double tax benefits that will:
(i) reduce the cost of complying with this Act; and
(ii) improve business efficiency by removing complexities and promoting simplicity in the taxation of wholly-owned groups.
Table of sections
Common rule
701-1 Single entity rule
Head company rules
701-5 Entry history rule
701-10 Cost to head company of assets of joining entity
701-15 Cost to head company of membership interests in entity that leaves group
701-20 Cost to head company of assets consisting of certain liabilities owed by entity that leaves group
701-25 Tax-neutral consequence for head company of ceasing to hold assets when entity leaves group
Entity rules
701-30 Where entity not subsidiary member for whole of income year
701-35 Tax-neutral consequence for entity of ceasing to hold assets when it joins group
701-40 Exit history rule
701-45 Cost of assets consisting of liabilities owed to entity by members of the group
701-50 Cost of certain membership interests of which entity becomes holder on leaving group
Supporting provisions
701-55 Setting the tax cost of an asset
701-56 Setting the tax cost of an asset--subsection 701-55(6)
701-58 Effect of setting the tax cost of an asset that the head company does not hold under the single entity rule
701-60 Tax cost setting amount
701-61 Assets in relation to Division 230 financial arrangement--head company's assessable income or deduction
701-65 Net income and losses for trusts and partnerships
Exceptions
701-70 Adjustments to taxable income where identities of parties to arrangement merge on joining group
701-75 Adjustments to taxable income where identities of parties to arrangement re-emerge on leaving group
701-80 Accelerated depreciation
701-85 Other exceptions etc. to the rules
701-90 Valuable right to future income treated as separate asset