Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-90
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CONSOLIDATED GROUPS
Division 719
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MEC groups
Subdivision 719-B
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MEC groups and their members
SECTION 719-4
What this Subdivision is about
View history note
Hide history noteA MEC group and a potential MEC group each consist of certain Australian-resident entities that are wholly-owned subsidiaries of a foreign top company.
A company that is a first-tier subsidiary of the top company is a tier-1 company.
A MEC group cannot be formed unless there are at least 2 tier-1 companies of the top company that are eligible to be members of the group.
A MEC group becomes consolidated at a time chosen by the eligible tier-1 companies.
One of the eligible tier-1 companies becomes the head company of the group.
The remaining members of the group are the subsidiary members.
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