INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-B - MEC groups and their members  

Choice to consolidate a potential MEC group

SECTION 719-50   Eligible tier-1 companies may choose to consolidate a potential MEC group  

Making a choice to consolidate

719-50(1)  


If:


(a) a *potential MEC group (the first group ) derived from 2 or more *eligible tier-1 companies of a *top company is in existence at the start of a particular day; and


(b) that day is after 30 June 2002; and


(c) none of those eligible tier-1 companies is already a member of a *MEC group or a *consolidated group;

those eligible tier-1 companies, jointly, may make a choice in writing that the first group be consolidated on and after that day. If they do so, the choice must specify that day.

Note:

The provisional head company must give the Commissioner a notice in the approved form containing information about the group (see sections 719-76 and 719-80 ).

Choice cannot be revoked or specified day amended

719-50(2)  
A choice cannot be revoked and the specification of the day cannot be amended.

719-50(3)  


A choice can be made no later than:


(a) if the company mentioned in subsection (3A) is required to give the Commissioner its *income tax return for the income year during which that day occurs - the day on which that company gives the Commissioner that income tax return; or


(b) otherwise - the last day in the period within which that company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.

719-50(3A)  


The company is:


(a) in a case where subsection 719-75(1) or (2) applies - the company that will be the *head company of the group as at the end of the income year; and


(b) in a case where subsection 719-75(3) applies - the company that will be the head company of the group immediately before the group ceased to exist.

Company ceases to be an eligible tier-1 company before choice is given to the Commissioner

719-50(4)  
If:


(a) as a result of a choice:


(i) subsection 719-75(1) , (2) or (3) would apply to the * MEC group concerned in relation to the * income year of a company in which the specified day occurred; and

(ii) in a case where subsection 719-75(1) or (2) applies - the company will be the * head company of the group as at the end of the income year; and

(iii) in a case where subsection 719-75(3) applies - the company will be the * head company of the group immediately before the group ceased to exist; and


(b) another company (the other company ) that was an eligible tier-1 company at the start of the specified day ceased to exist at a time before:


(i) the day on which the company mentioned in paragraph (a) gives the Commissioner its *income tax return for the income year during which the day specified in the choice occurs; or

(ii) the last day in the period within which the company mentioned in paragraph (a) would be required to give the Commissioner such a return if it were required to give the Commissioner such a return; and


(c) having regard to all relevant circumstances, it would be reasonable to conclude that the other company would have been a party to the choice if the other company had continued to exist;

the other company is taken to have authorised the company that will be the head company as mentioned in subparagraph (a)(ii) or (iii):


(d) to make the choice on behalf of the other company; and


(e) to do, on behalf of the other company, anything else under:


(i) subsection (1) of this section; or

(ii) subsection 719-60(1) or (3).

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