Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 703 - Consolidated groups and their members  

Basic concepts  

SECTION 703-15   Members of a consolidated group or consolidatable group  

703-15(1)    
An entity is a member of a ^* consolidated group or ^* consolidatable group while the entity is:

(a) the ^* head company of the group; or

(b) a ^* subsidiary member of the group.

703-15(2)    

At a particular time in an income year, an entity is:

(a) a head company if all the requirements in item 1 of the table are met in relation to the entity; or

(b) a subsidiary member of a ^* consolidated group or ^* consolidatable group if all the requirements in item 2 of the table are met in relation to the entity:

Head companies and subsidiary members of groups
Column 1 Entity ' s role in relation to group	Column 2 Income tax treatment requirements	Column 3 Australian residence requirements	Column 4 Ownership requirements
1 Head company	The entity must be a company (but not one covered by section 703-20) that has all or some of its taxable income (if any) taxed at a rate that is or equals the * corporate tax rate	The entity must be an Australian resident (but not a * prescribed dual resident)	The entity must not be a * wholly-owned subsidiary of another entity that meets the requirements in columns 2 and 3 of this item or, if it is, it must not be a subsidiary member of a * consolidatable group or * consolidated group
2 Subsidiary member	The requirements are that: (a) the entity must be a company, trust or partnership (but not one covered by section 703-20); and (b) if the entity is a company - all or some of its taxable income (if any) must be taxable apart from this Part at a rate that is or equals the * corporate tax rate; and (c) the entity must not be a non-profit company (as defined in the Income Tax Rates Act 1986 )	The entity must: (a) be an Australian resident (but not a * prescribed dual resident), if it is a company; or (b) comply with section 703-25, if it is a trust; or (c) be a partnership	The entity must be a * wholly-owned subsidiary of the head company of the group and, if there are interposed between them any entities, the set of requirements in section 703-45, section 701C-10 of the Income Tax (Transitional Provisions) Act 1997 or section 701C-15 of that Act must be met