Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-BA - Group conversions involving MEC groups  

SECTION 719-130   Provisions of this Part not to apply to conversion  

719-130(1)    
A provision mentioned in subsection (5) that applies on an entity becoming a *member of a *consolidated group or *MEC group does not apply to an entity becoming such a member because of a situation described in subsection 719-120(1) , unless the provision is expressed to apply despite this subsection.

Note 1:

An example of the effect of this subsection is that section 701-5 (entry history rule) does not apply. See instead section 719-125 .

Note 2:

Further examples of the effect of this subsection are that Division 705 (cost setting on entry) and Division 707 (losses) do not apply.

719-130(2)    
Subsection (1) does not affect the application of subsection 701-1(1) (the single entity rule).

719-130(3)    
A provision mentioned in subsection (5) that applies on an entity ceasing to be a *member of a *consolidated group or *MEC group does not apply to an entity ceasing being such a member because of a situation described in subsection 719-120(1) , unless the provision is expressed to apply despite this subsection.

Note 1:

An example of the effect of this subsection is that section 701-40 (Exit history rule) does not apply. See instead section 719-125 .

Note 2:

Another example of the effect of this subsection is that Division 711 (cost setting on exit) does not apply.

719-130(4)    
Subsection (3) does not apply if:

(a) the old group mentioned in subsection 719-120(1) is a *consolidated group; and

(b) the new group mentioned in subsection 719-120(1) is a *MEC group; and

(c) the entity ceasing to be a *member of the old group becomes an *eligible tier-1 company in respect of the new group.

719-130(5)    
The provisions are as follows:

(a) Subdivision 104-L ;

(b) section 165-212E ;

(c) this Part (other than this Subdivision);

(d) Part 3-90 of the Income Tax (Transitional Provisions) Act 1997 .