CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-90
-
CONSOLIDATED GROUPS
History
Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
Division 719
-
MEC groups
History
Div 719 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
Subdivision 719-B
-
MEC groups and their members
History
Subdiv 719-B heading inserted by No 117 of 2002, s 3 and Sch 8 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
Choice to consolidate a potential MEC group
SECTION 719-50
Eligible tier-1 companies may choose to consolidate a potential MEC group
Making a choice to consolidate
719-50(1)
If:
(a)
a *potential MEC group (the
first group
) derived from 2 or more *eligible tier-1 companies of a *top company is in existence at the start of a particular day; and
(b)
that day is after 30 June 2002; and
(c)
none of those eligible tier-1 companies is already a member of a *MEC group or a *consolidated group;
those eligible tier-1 companies, jointly, may make a choice in writing that the first group be consolidated on and after that day. If they do so, the choice must specify that day.
Note:
The provisional head company must give the Commissioner a notice in the approved form containing information about the group (see sections
719-76
and
719-80
).
History
S 719-50(1) amended by No 43 of 2019, s 3 and Sch 2 items 81 and 82, by substituting
"
Note
"
for
"
Note 1
"
and repealing note 3, effective 1 July 2019. For application, transitional and savings provisions, see note under s
721-10(2)
. Note 3 formerly read:
Note 3:
A group that is consolidated for income tax purposes may also consolidate for the purposes of the
Petroleum Resource Rent Tax Assessment Act 1987
(see section 58N of that Act).
S 719-50(1) amended by No 96 of 2014, s 3 and Sch 1 item 20, by repealing note 2, effective 30 September 2014. For transitional provisions see note under s
15-85
. Note 2 formerly read:
Note 2:
A group that is consolidated for income tax purposes may also consolidate for the purposes of the
Minerals Resource Rent Tax Act 2012
(see section
215-10
of that Act).
S 719-50(1) amended by No 18 of 2012, s 3 and Sch 5 item 3, by inserting note 3 at the end, effective 1 July 2012.
S 719-50(1) amended by No 14 of 2012, s 3 and Sch 3 items 42 and 43, by inserting
"
1
"
after
"
Note
"
and inserting note 2, effective 1 July 2012. For application and transitional provisions see note under s
15-85
.
S 719-50(1) substituted by No 56 of 2010, s 3 and Sch 5 item 177. For application provision see note under s
703-50(1)
. S 719-50(1) formerly read:
Making a choice to consolidate
719-50(1)
If:
(a)
a
*
potential MEC group (the
first group
) derived from 2 or more
*
eligible tier-1 companies of a
*
top company is in existence at the start of a particular day; and
(b)
that day is after 30 June 2002; and
(c)
none of those eligible tier-1 companies is already a member of a
*
MEC group or a
*
consolidated group;
those eligible tier-1 companies may give the Commissioner a written notice in the
*
approved form, jointly:
(d)
specifying that day; and
(e)
making a choice that the first group be consolidated on and after that day.
Note:
The notice must also include an appointment of an eligible tier-1 company to be the provisional head company of the
*
MEC group
-
see subsection 719-60(1).
Choice cannot be revoked or specified day amended
719-50(2)
A choice cannot be revoked and the specification of the day cannot be amended.
719-50(3)
A choice can be made no later than:
(a)
if the company mentioned in subsection (3A) is required to give the Commissioner its *income tax return for the income year during which that day occurs
-
the day on which that company gives the Commissioner that income tax return; or
(b)
otherwise
-
the last day in the period within which that company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.
History
S 719-50(3) substituted by No 56 of 2010, s 3 and Sch 5 item 178. For application provision see note under s
703-50(1)
. S 719-50(3) formerly read:
Time at which choice must be given to Commissioner
719-50(3)
If, as a result of a choice:
(a)
subsection 719-75(1), (2) or (3) would apply to the
*
MEC group concerned in relation to the
*
income year of a company in which the specified day occurred; and
(b)
in a case where subsection 719-75(1) or (2) applies
-
the company will be the
*
head company of the group as at the end of the income year; and
(c)
in a case where subsection 719-75(3) applies
-
the company will be the
*
head company of the group immediately before the group ceased to exist;
notice of the choice must be given to the Commissioner:
(d)
if the company is required to give the Commissioner an
*
income tax return for the income year in which the specified day occurred
-
during the period:
(i)
beginning on the specified day; and
(ii)
ending on the day on which the company gives that return; or
(e)
if the company is not required to give the Commissioner an income tax return for the income year in which the specified day occurred
-
during the period:
(i)
beginning on the specified day; and
(ii)
ending at the end of the period within which the company would have been required to give an income tax return for that income year, if the company had been required to give an income tax return for that income year.
719-50(3A)
The company is:
(a)
in a case where subsection
719-75(1)
or
(2)
applies
-
the company that will be the *head company of the group as at the end of the income year; and
(b)
in a case where subsection
719-75(3)
applies
-
the company that will be the head company of the group immediately before the group ceased to exist.
History
S 719-50(3A) inserted by No 56 of 2010. For application provision see note under s
703-50(1)
.
Company ceases to be an eligible tier-1 company before choice is given to the Commissioner
719-50(4)
If:
(a)
as a result of a choice:
(i)
subsection
719-75(1)
, (2) or (3) would apply to the
*
MEC group concerned in relation to the
*
income year of a company in which the specified day occurred; and
(ii)
in a case where subsection
719-75(1)
or (2) applies
-
the company will be the
*
head company of the group as at the end of the income year; and
(iii)
in a case where subsection
719-75(3)
applies
-
the company will be the
*
head company of the group immediately before the group ceased to exist; and
(b)
another company (the
other company
) that was an eligible tier-1 company at the start of the specified day ceased to exist at a time before:
(i)
the day on which the company mentioned in paragraph (a) gives the Commissioner its *income tax return for the income year during which the day specified in the choice occurs; or
(ii)
the last day in the period within which the company mentioned in paragraph (a) would be required to give the Commissioner such a return if it were required to give the Commissioner such a return; and
(c)
having regard to all relevant circumstances, it would be reasonable to conclude that the other company would have been a party to the choice if the other company had continued to exist;
the other company is taken to have authorised the company that will be the head company as mentioned in subparagraph (a)(ii) or (iii):
(d)
to make the choice on behalf of the other company; and
(e)
to do, on behalf of the other company, anything else under:
(i)
subsection (1) of this section; or
(ii)
subsection
719-60(1)
or (3).
History
S 179-50(4) amended by No 56 of 2010, s 3 and Sch 5 item 179, by substituting para (b). For application provision see note under s
703-50(1)
. Para (b) formerly read:
(b)
another company (the
other company
) that was an eligible tier-1 company at the start of the specified day ceased to exist at a time before the day on which notice of the choice was given to the Commissioner; and
History
S 719-50 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).