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  

Effects of change of head company

SECTION 719-85  

719-85   Application  

Sections 719-90 to 719-95 set out the effects if:

(a) a company (the old head company ) is the ^* head company of a ^* MEC group at the end of an income year; and

(b) a different company (the new head company ) is the head company of the group at the start of the next income year (the transition time ).

Note:

This case can arise from the operation of section 719-75 , which treats an entity that is the provisional head company of the group at a certain time in the income year as being the group ' s head company at all times in the income year when the group is in existence.

The old head company is also taken to become a subsidiary member of the group at the transition time, and the new head company is taken to cease being a subsidiary member at that time. Section 719-95 ensures that these results do not change the tax position of the group.