INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 703 - Consolidated groups and their members  

Basic concepts  

SECTION 703-15   Members of a consolidated group or consolidatable group  

703-15(1)  
An entity is a member of a * consolidated group or * consolidatable group while the entity is:


(a) the * head company of the group; or


(b) a * subsidiary member of the group.

703-15(2)  


At a particular time in an income year, an entity is:


(a) a head company if all the requirements in item 1 of the table are met in relation to the entity; or


(b) a subsidiary member of a * consolidated group or * consolidatable group if all the requirements in item 2 of the table are met in relation to the entity:


Graphic
Graphic
Head companies and subsidiary members of groups
Column 1
Entity ' s role in relation to group
Column 2
Income tax treatment requirements
Column 3
Australian residence requirements
Column 4
Ownership requirements
1 Head company The entity must be a company (but not one covered by section 703-20) that has all or some of its taxable income (if any) taxed at a rate that is or equals the * corporate tax rate The entity must be an Australian resident (but not a * prescribed dual resident) The entity must not be a * wholly-owned subsidiary of another entity that meets the requirements in columns 2 and 3 of this item or, if it is, it must not be a subsidiary member of a * consolidatable group or * consolidated group
2 Subsidiary member The requirements are that:

(a) the entity must be a company, trust or partnership (but not one covered by section 703-20); and

(b) if the entity is a company - all or some of its taxable income (if any) must be taxable apart from this Part at a rate that is or equals the * corporate tax rate; and

(c) the entity must not be a non-profit company (as defined in the Income Tax Rates Act 1986 )
The entity must:

(a) be an Australian resident (but not a * prescribed dual resident), if it is a company; or

(b) comply with section 703-25, if it is a trust; or

(c) be a partnership
The entity must be a * wholly-owned subsidiary of the head company of the group and, if there are interposed between them any entities, the set of requirements in section 703-45, section 701C-10 of the Income Tax (Transitional Provisions) Act 1997 or section 701C-15 of that Act must be met


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.