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  

Provisional head company

SECTION 719-60   Appointment of provisional head company  

Appointment on formation of group - choice

719-60(1)  


If companies make a choice under section 719-50 , the choice must include an appointment, made jointly by the companies, of one of those companies to be the provisional head company of the * MEC group concerned. The appointment comes, or is taken to have come, into force at the time when the choice starts or started to have effect. Appointment on formation of group - special conversion event

719-60(2)  
If a * special conversion event happens to a * potential MEC group, the * eligible tier-1 companies that were the members of the MEC group that resulted from the event are taken to have appointed the company mentioned in paragraph 719-40(1)(b) as the provisional head company of the * MEC group. The appointment is taken to have come into force when the event happened. Appointment after formation of group

719-60(3)  


If a *cessation event happens to the *provisional head company of a *MEC group, the *eligible tier-1 companies that are or were members of the MEC group immediately after the cessation event may make a choice in writing, jointly appointing one of those companies to be the provisional head company of the group. The appointment is taken to have come into force immediately after the cessation event. Qualifications for provisional head company

719-60(4)  
An appointment of a company under subsection (1) or (3) as the * provisional head company of a * MEC group has no effect unless, at the time the appointment comes into force, the company is qualified to be the * provisional head company of the MEC group under section 719-65 . Appointment remains in force until cessation event

719-60(5)  
The appointment of a company as the * provisional head company of a * MEC group remains in force until a * cessation event happens to the company. What is a cessation event?

719-60(6)  
A cessation event happens to a * provisional head company of a * MEC group if:


(a) the company ceases to be qualified to be the * provisional head company of the group under section 719-65 ; or


(b) the company ceases to exist.


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