Income Tax Assessment Act 1997
Sections 719-90 to 719-95 set out the effects if:
(a) a company (the old head company ) is the * head company of a * MEC group at the end of an income year; and
(b) a different company (the new head company ) is the head company of the group at the start of the next income year (the transition time ).
This case can arise from the operation of section 719-75 , which treats an entity that is the provisional head company of the group at a certain time in the income year as being the group ' s head company at all times in the income year when the group is in existence.
The old head company is also taken to become a subsidiary member of the group at the transition time, and the new head company is taken to cease being a subsidiary member at that time. Section 719-95 ensures that these results do not change the tax position of the group.