INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 701 - Modified application of provisions of Income Tax Assessment Act 1997 for certain consolidated groups formed in 2002-03 and 2003-04 financial years  

Subdivision 701-A - Preliminary  

SECTION 701-1   Transitional group and transitional entity  

Group formed on 1 July 2002

701-1(1)  
If a consolidated group came into existence on 1 July 2002:

(a) the group is a transitional group ; and

(b) each entity that became a subsidiary member of the group on the day it came into existence is a transitional entity . Group formed after 1 July 2002 but before 1 July 2003

701-1(2)  
If a consolidated group came into existence after 1 July 2002 but before 1 July 2003:

(a) the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity ; and

(b) an entity is a transitional entity if:

(i) at no time after 1 July 2002 and before the group came into existence was the entity a wholly-owned subsidiary of the entity (the future head company ) that became the head company of the group; or

(ii) at some time during that period, the entity was a wholly-owned subsidiary of the future head company and it remained such from the earliest time after 1 July 2002 when it was a wholly-owned subsidiary of the future head company until the group came into existence.

Group formed during financial year starting on 1 July 2003

701-1(3)  
If a consolidated group came into existence during the financial year starting on 1 July 2003:

(a) the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity; and

(b) an entity is a transitional entity if:

(i) just before 1 July 2003, it was a wholly-owned subsidiary of the future head company; and

(ii) it remained such from the earliest time after 1 July 2002 when it was a wholly-owned subsidiary of the future head company until the group came into existence.