TD 2008/29 & 31 – Application of ‘consolidation rules’ to sale and purchase transactions that span entry or exit from Consolidated Group following 2010 Measures No. 1 Bill [R7]

The ATO on Wed 30.5.2012, issued Addenda to the following Taxation Determinations to reflect the changes introduced by the Tax Laws Amendment (2010 Measures No 1) Act 2010:

• Taxation Determination TD 2008/29: Consolidation: capital gains: do the core consolidation rules in Div 701 of the ITAA 1997 modify the effect of the CGT contract rules if an entity contracts to buy or sell a CGT asset and the contract settles after the entity becomes, or ceases to be, a member of a consolidated group?
• Taxation Determination TD 2008/31: Consolidation: capital gains: for the purposes of Pt 3-90 of the ITAA 1997, is the CGT asset that an entity has contracted to sell to another taxpayer an asset of the entity at a time it joins or leaves a consolidated group, if the contract is not completed at that time?

[LTN 65, 4/4]