New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 12   Consolidation: MEC group cost setting rules

Income Tax Assessment Act 1997

3   Section 719-165

Repeal the section, substitute:

719-165 Trading stock value not set for assets of eligible tier-1 companies

(1) This section applies if an entity (the MEC joining entity ) becomes a *subsidiary member of a *MEC group at a time (the MEC joining time ).

(2) Subsection 701-35(4) (setting value of trading stock at tax-neutral amount) does not apply to the assets of the MEC joining entity if it is an *eligible tier-1 company at the MEC joining time.