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 719-730   Some alteration times only affect interests in top company  

719-730(1)    
This section applies if an ^* alteration time (except one arising under subsection 719-725(4) ) happens for the ^* head company of a ^* MEC group.

719-730(2)    
Sections 165-115ZA and 165-115ZB apply, in relation to the alteration time, to an interest or debt that is, or is part of, a relevant equity interest or relevant debt interest that an entity has in the ^* head company just before the ^* alteration time, only if the interest or debt is:

(a) an ^* equity or loan interest in the ^* top company for the MEC group; or

(b) an ^* indirect equity or loan interest in the top company.

Note:

Sections 165-115ZA and 165-115ZB are about the consequences that an alteration time for a loss company has for relevant equity interests and relevant debt interests in the company.

719-730(3)    
In determining what is a relevant equity interest or relevant debt interest that an entity has in the ^* head company just before the ^* alteration time, make the assumptions in subsection 719-720(5) .