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 719-65   Qualifications for the provisional head company of a MEC group  

Qualifications for the provisional head company

719-65(1)  
A company is qualified to be the * provisional head company of a * MEC group if:


(a) the company is an * eligible tier-1 company of the * top company; and


(b) no * membership interests in the company are beneficially owned by another member of the group.

719-65(2)  
Subsection (1) has effect subject to subsection (3). Period during which new provisional head company must have been a member of the group

719-65(3)  
If:


(a) a company (the new company ) is to be appointed as the * provisional head company of a * MEC group under subsection 719-60(3) ; and


(b) the appointment will come into force immediately after a * cessation event happens to the former provisional head company of the group; and


(c) a company (the original company ) (which may be the former provisional head company) was appointed as the provisional head company of the group under subsection 719-60(1) or (2);

the new company is not qualified to be the provisional head company of the group unless the new company has been a member of the group at all times during the period:


(d) beginning at whichever of the following times is applicable:


(i) if the cessation event happened in the income year of the original company in which the group came into existence - the time when the group came into existence;

(ii) in any other case - the start of the income year of the former provisional head company in which the cessation event happened; and


(e) ending when the cessation event happened.


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