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 719-735   Some alteration times affect only pooled interests  

719-735(1)    
Sections 165-115ZA and 165-115ZB do not apply in relation to an ^* alteration time that happens for the ^* head company of a ^* MEC group because of subsection 719-725(4) (trigger time for MEC group cost setting rules: pooling cases).

719-735(2)    
Instead, Subdivision 719-K applies to the ^* MEC group, in relation to the trigger time, on the basis that:

(a) what would, apart from this section, be the pooled cost amount for the purposes of the formulas in subsections 719-570(1) and (2) is reduced by the amount of the ^* head company's overall loss under section 165-115R or 165-115S at that alteration time; but

(b) paragraph (a) of this subsection only affects the application of those formulas because of subsection 719-570(3) (to work out the ^* reduced cost base of a ^* membership interest).