Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-F - Losses  

Bundles of losses and their available fractions

SECTION 719-300   Application  

719-300(1)    
Sections 719-305 , 719-310 , 719-315 , 719-320 and 719-325 operate only if:

(a) a company (the ongoing head company ) is the ^* head company of a ^* MEC group for an income year or a period in an income year; and

(b) an event (the application event ) described in subsection (2) or (3) happens at a time in the income year in relation to the group.

719-300(2)    
One application event is that another company (the new tier-1 member ) becomes both a ^* member of the ^* MEC group and an ^* eligible tier-1 company of the ^* top company for the group.

719-300(3)    
The other application event is that the ^* MEC group comes into existence as a result of a ^* special conversion event happening to the ^* potential MEC group derived from the ongoing head company.

Note:

This application event happens only if the ongoing head company was the head company of a consolidated group just before the special conversion event.

Exceptions for events involving subsidiary members of group

719-300(4)    
Those sections do not operate because of the event described in subsection (2) if the new tier-1 member was a ^* subsidiary member of the ^* MEC group immediately before the event.

719-300(5)    
Those sections do not operate because of the event described in subsection (3) if all the other companies that are described in paragraph 719-40(1)(c) and are involved in the ^* special conversion event were ^* subsidiary members of the ^* consolidated group just before the event.

719-300(6)    
Subsections (4) and (5) have effect despite subsection (1).