Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-B - MEC groups and their members  

Basic concepts

SECTION 719-40   Special conversion event - potential MEC group  

719-40(1)  
A special conversion event happens at a particular time to a * potential MEC group derived from an * eligible tier-1 company of a * top company if:


(a) at that time, the group is not a * MEC group as a result of a choice under section 719-50 ; and


(b) immediately before that time, a company is:


(i) that eligible tier-1 company; and

(ii) the * head company of a * consolidated group; and


(c) at that time, one or more other companies become eligible tier-1 companies of the top company; and


(d) immediately after that time, no * membership interests in the company mentioned in paragraph (b) are beneficially owned by another member of the potential MEC group derived from:


(i) the company mentioned in paragraph (b); and

(ii) the companies mentioned in paragraph (c); and


(e) the company mentioned in paragraph (b) makes a choice in writing no later than the day mentioned in subsection (2):


(i) specifying one or more of the companies mentioned in paragraph (c); and

(ii) stating that a MEC group is to come into existence at that time as a result of the specified companies becoming eligible tier-1 companies of the top company; and


(f) if:


(i) a company specified in the choice was a member of another MEC group immediately before that time; and

(ii) all of the eligible tier-1 companies in that other MEC group became eligible tier-1 companies of the top company at that time;
each eligible tier-1 company in that other MEC group is specified in the choice.
Note:

The company mentioned in paragraph (b) must give the Commissioner a notice in the approved form containing information about the special conversion event (see sections 719-78 and 719-80 ).

719-40(2)  


The day mentioned in paragraph (1)(e) is:


(a) if the company is required to give the Commissioner its *income tax return for the income year during which that time occurs - the day on which the company gives the Commissioner that income tax return; or


(b) otherwise - the last day in the period within which the company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.


 

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