Income Tax Assessment Act 1997
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.
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).
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