Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC rules  

Subdivision 719-B - MEC groups and their members  

SECTION 719-15   Modified effect of subsection 701D-10(2)  

719-15(1)    
This section applies if the group mentioned in subsection 701D-10(2) of this Act is a MEC group.

719-15(2)    
For the purposes of that subsection, in determining whether an entity was at a particular time (the ownership time ) a wholly-owned subsidiary of the entity that became the head company of the group (the head entity ), make the assumption in subsection (3).

719-15(3)    
The assumption is that the head entity owned at the ownership time each membership interest covered by subsection (4).

719-15(4)    
A membership interest is covered by this subsection if it was beneficially owned at the ownership time by any entity that became an eligible tier-1 company of the group at the formation time.