Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-T - Interactions between this Part and other areas of the income tax law: special rules for MEC groups  

How Subdivision 165-CD applies to MEC groups

SECTION 719-720   Alteration times under section 165-115L or 165-115M  

719-720(1)    
This section has effect for the purposes of determining whether a time (the test time ) is an ^* alteration time under section 165-115L (about alterations in ownership) or 165-115M (about alterations in control) in respect of the ^* head company of a ^* MEC group.

Modified meaning of reference time

719-720(2)    
The reference time is:

(a) if no ^* alteration time has occurred in respect of the head company since the group came into existence and before the test time - when the group came into existence; or

(b) otherwise - the time just after the last such alteration time.

719-720(3)    
In applying subsection (2), disregard an ^* alteration time arising under subsection 719-725(4) .

719-720(4)    
Subsection (2) of this section has effect despite subsections 165-115L(2) and 165-115M(2) .

Assumptions to make

719-720(5)    
Assume that, while the ^* MEC group exists:

(a) the ^* top company for the group holds and beneficially owns all the ^* membership interests in the ^* head company (instead of whoever actually does); and

(b) those membership interests remain the same; and

(c) the top company directly controls the voting power in the head company.