Cost setting rules for exit cases—modification of core rules
701C-40 Cost setting rules for exit cases—modification of core rules
Section 701‑15 of the Income Tax Assessment Act 1997 applies as if the following subsection were added at the end of the section:
Application to transitional foreign‑held subsidiaries
If an entity that ceases to be a subsidiary member is a transitional foreign‑held subsidiary when it does so:
this section applies to each membership interest in the transitional foreign‑held subsidiary that is held by an entity (an eligible non‑resident) of a kind mentioned in subparagraph 701C‑20(b)(i), (ii), (iii) or (iv) of the Income Tax (Transitional Provisions) Act 1997 in the same way as it applies to a membership interest in the transitional foreign‑held subsidiary that is held by the head company; and
for that purpose, the definition of head company core purposes in subsection 701‑1(2) of the Income Tax Assessment Act 1997 applies to the eligible non‑resident in the same way as it applies to the head company.
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