Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-90
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CONSOLIDATED GROUPS
Division 703
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Consolidated groups and their members
Effects of choice to continue group after shelf company becomes new head company
SECTION 703-75
Interposed company treated as substituted for original entity at all times before the completion time
703-75(1)
Everything that happened in relation to the original entity before the completion time:
(a) is taken to have happened in relation to the interposed company instead of in relation to the original entity; and
(b) is taken to have happened in relation to the interposed company instead of what would (apart from this section) be taken to have happened in relation to the interposed company before that time;
(c) the interposed company had been the original entity; and
(d) the original entity had been the interposed company.
703-75(2)
To avoid doubt, subsection (1) also covers everything that, immediately before the completion time, was taken, because of:
(a) section 701-1 (Single entity rule); or
(b) section 701-5 (Entry history rule); or
(c) one or more previous applications of this section; or
(d) section 719-90 (about the effects of a change of head company of a MEC group); or
(e) section 719-125 (about the effects of a group conversion involving a MEC group);
703-75(3)
Subsections (1) and (2) have effect:
(a) for the head company core purposes in relation to an income year ending after the completion time; and
(b) for the entity core purposes in relation to an income year ending after the completion time; and
(c) for the purposes of determining the respective balances of the * franking accounts of the original entity and the interposed company at and after the completion time.
(d) (Repealed by No 147 of 2005)
703-75(4)
Subsections (1) and (2) have effect subject to:
(a) section 701-40 (Exit history rule); and
(b) a provision of this Act to which section 701-40 is subject because of section 701-85 (about exceptions to the core rules in Division 701 ).
View history note
Hide history noteEverything that happened in relation to the original entity before the completion time:
(a) is taken to have happened in relation to the interposed company instead of in relation to the original entity; and
(b) is taken to have happened in relation to the interposed company instead of what would (apart from this section) be taken to have happened in relation to the interposed company before that time;
just as if, at all times before the completion time:
(c) the interposed company had been the original entity; and
(d) the original entity had been the interposed company.
Note:
This section treats the original entity and the interposed company as having in effect exchanged identities throughout the period before the completion time, but without affecting any of the original entity ' s other attributes.
703-75(2)
To avoid doubt, subsection (1) also covers everything that, immediately before the completion time, was taken, because of:
(a) section 701-1 (Single entity rule); or
(b) section 701-5 (Entry history rule); or
(c) one or more previous applications of this section; or
(d) section 719-90 (about the effects of a change of head company of a MEC group); or
(e) section 719-125 (about the effects of a group conversion involving a MEC group);
to have happened in relation to the original entity.
703-75(3)
Subsections (1) and (2) have effect:
(a) for the head company core purposes in relation to an income year ending after the completion time; and
(b) for the entity core purposes in relation to an income year ending after the completion time; and
(c) for the purposes of determining the respective balances of the * franking accounts of the original entity and the interposed company at and after the completion time.
(d) (Repealed by No 147 of 2005)
703-75(4)
Subsections (1) and (2) have effect subject to:
(a) section 701-40 (Exit history rule); and
(b) a provision of this Act to which section 701-40 is subject because of section 701-85 (about exceptions to the core rules in Division 701 ).
Note:
An example of provisions covered by paragraph (b) of this subsection is Subdivision 717-E (about transferring to a company leaving a consolidated group various surpluses under the CFC rules in Part X of the Income Tax Assessment Act 1936 ).
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