Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-T - Interactions between this Part and other areas of the income tax law: special rules for MEC groups  

How Subdivision 165-CD applies to MEC groups

SECTION 719-725   Additional alteration times for head company of MEC group  

Additional alteration times based on section 719-280

719-725(1)  
The time when a * potential MEC group ceases to exist is an alteration time in respect of the * head company of a * MEC group if, just before that time, the potential MEC group's membership was the same as the membership of the MEC group.

Note:

The alteration times in subsections (1), (2) and (3) are based on the events described in subsections 719-280(2) , (3) and (4), each of which causes the test company referred to in section 719-280 to be assumed to fail the continuity of ownership test in section 165-12 .

719-725(2)  
If something:


(a) happens at a time in relation to * membership interests in one or more of these entities:


(i) a company that was just before that time a * member of a * MEC group and an * eligible tier-1 company of the * top company for the MEC group;

(ii) an entity interposed between a company described in subparagraph (i) and the company that was the top company for the group just before that time; and


(b) does not cause the * potential MEC group whose membership is the same as the membership of the MEC group to cease to exist, but does cause a change in the identity of the top company for the potential MEC group;

that time is an alteration time in respect of the * head company of the * MEC group.

719-725(3)  
The time when a * MEC group ceases to exist because there ceases to be a * provisional head company of the group is an alteration time in respect of the * head company of the * MEC group. Additional alteration times based on Subdivision 719-K

719-725(4)  
If Subdivision 719-K (MEC group cost setting rules: pooling cases) applies, the time just before the trigger time referred to in paragraph 719-555(1)(a) is an alteration time in respect of the * head company of the * MEC group.


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