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).


 

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