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  

Provisional head company

SECTION 719-65   Qualifications for the provisional head company of a MEC group  

Qualifications for the provisional head company

719-65(1)    
A company is qualified to be the ^* provisional head company of a ^* MEC group if:

(a) the company is an ^* eligible tier-1 company of the ^* top company; and

(b) no ^* membership interests in the company are beneficially owned by another member of the group.

719-65(2)    
Subsection (1) has effect subject to subsection (3).

Period during which new provisional head company must have been a member of the group

719-65(3)    
If:

(a) a company (the new company ) is to be appointed as the ^* provisional head company of a ^* MEC group under subsection 719-60(3) ; and

(b) the appointment will come into force immediately after a ^* cessation event happens to the former provisional head company of the group; and

(c) a company (the original company ) (which may be the former provisional head company) was appointed as the provisional head company of the group under subsection 719-60(1) or (2);

the new company is not qualified to be the provisional head company of the group unless the new company has been a member of the group at all times during the period:

(d) beginning at whichever of the following times is applicable:

(i) if the cessation event happened in the income year of the original company in which the group came into existence - the time when the group came into existence;

(ii) in any other case - the start of the income year of the former provisional head company in which the cessation event happened; and

(e) ending when the cessation event happened.