Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-I - Bad debts  

Maintaining the same ownership to be able to deduct bad debt

SECTION 719-460   Assumptions about nothing happening to affect direct and indirect ownership of the test company  

719-460(1)    
This section sets out an assumption that must be made whenever there is a change in the identity of the ^* top company for the ^* MEC group during the ^* ownership test period.

719-460(2)    
Assume that after the change nothing happens in relation to ^* membership interests or voting power in the following entities that would affect whether the test company would meet the conditions in section 165-123 :

(a) the company that was the ^* top company for the ^* MEC group before the change;

(b) an entity (if any) that at the time of the change was interposed between:

(i) the company that was the top company for the MEC group before the change; and

(ii) the company that became the top company for the MEC group as part of the change.