Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-B - How Subdivision 165-CD applies to consolidated groups and leaving entities  

How Subdivision 165-CD applies to leaving entity that is a company

SECTION 715-265   Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest  

715-265(1)  
For the purposes of Subdivision 165-CD , treat the *head company of a *consolidated group as not having a relevant equity interest in a *loss company at a particular time if:


(a) the head company is an *eligible tier 1 company of a *top company at that time; and


(b) the top company is a *widely held company at that time; and


(c) because of subsections 165-115X(2A), (2B) and (2C) , the top company does not have a relevant equity interest under section 165-115X in the loss company at that time.

715-265(2)  
For the purposes of paragraph (1)(c), disregard the operation of subsection 701-1(1) (the single entity rule) in determining whether subsection 165-115X(2C) has the effect that the *top company has the relevant equity interest mentioned in that paragraph.

715-265(3)  
For the purposes of Subdivision 165-CD , treat the *head company of a *consolidated group as not having a relevant debt interest in a *loss company at a particular time if:


(a) the head company is an *eligible tier 1 company of a *top company at that time; and


(b) the top company is a *widely held company at that time; and


(c) because of subsections 165-115Y(3A), (3B) and (3C) , the top company does not have a relevant debt interest under section 165-115Y in the loss company at that time.


 

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