Income Tax Assessment Act 1997



Division 719 - MEC groups  

Subdivision 719-F - Losses  

Bundles of losses and their available fractions

SECTION 719-300   Application  

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.

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.

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

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.

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.

Subsections (4) and (5) have effect despite subsection (1).


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