CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-90
-
CONSOLIDATED GROUPS
History
Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
Division 703
-
Consolidated groups and their members
History
Div 703 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
Basic concepts
SECTION 703-45
Subsidiary members or nominees interposed between the head company and a subsidiary member of a consolidated group or a consolidatable group
703-45(1)
This section describes, for the purposes of item 2, column 4 of the table in subsection
703-15(2)
, a set of requirements that must be met for an entity (the
test entity
) to be a
*
subsidiary member of a
*
consolidated group or a
*
consolidatable group at a particular time (the
test time
).
703-45(2)
At the test time, each of the interposed entities must either:
(a)
be a
*
subsidiary member of the group; or
(b)
hold
*
membership interests in:
(i)
the test entity; or
(ii)
a subsidiary member of the group interposed between the
*
head company of the group and the test entity;
only as a nominee of one or more entities each of which is a
*
member of the group.
History
S 703-45 substituted by No 16 of 2003, s 3 and Sch 16 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
). S 703-45 formerly read:
Entities interposed between the head company and a subsidiary member of a consolidated group
703-45(1)
For an entity (the
test entity
) to be a
*
subsidiary member of a
*
consolidated group or
*
consolidatable group if there are one or more other entities interposed between the test entity and the
*
head company of the group, one of the sets of circumstances described in subsection (2), (3) or (4) must exist.
Subsidiary members or nominees interposed
703-45(2)
One set of circumstances is that each of the interposed entities either:
(a)
is a
*
subsidiary member of the group; or
(b)
holds
*
membership interests in:
(i)
the test entity; or
(ii)
a subsidiary member of the group interposed between the
*
head company of the group and the test entity;
only as a nominee of one or more entities each of which is a
*
member of the group.
Non-resident interposed
-
test entity is a company
703-45(3)
Another set of circumstances is that:
(a)
the test entity is a company; and
(b)
at least one of the interposed entities is:
(i)
a company (a
non-resident company
) that is a foreign resident; or
(ii)
a trust (a
non-resident trust
) that does not meet the requirements in any item of the table in section
703-25
; and
(c)
each of the interposed entities is:
(i)
a
*
subsidiary member of the group; or
(ii)
a non-resident company; or
(iii)
a non-resident trust; or
(iv)
an entity that holds
*
membership interests in an entity interposed between it and the test entity, or in the test entity, only as a nominee of one or more entities each of which is a
*
member of the group, a non-resident company or a non-resident trust; or
(v)
a partnership, each of the partners in which is a non-resident company or a non-resident trust; and
(d)
the test entity would be a subsidiary member of the group if each interposed entity that is a non-resident company or non-resident trust were a subsidiary member of the group.
Non-resident interposed
-
test entity is a trust or partnership
703-45(4)
Another set of circumstances is that:
(a)
the test entity is a trust or partnership; and
(b)
one or more of the interposed entities are companies that are
*
subsidiary members of the group because the circumstances in subsection (3) exist; and
(c)
the test entity would be a subsidiary member of the group if the
*
head company beneficially owned all the
*
membership interests beneficially owned by each company described in paragraph (b).
S 703-45 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
S 703-45 substituted by No 16 of 2003 and inserted by No 68 of 2002 (see sec
700-1
of the
Income Tax (Transitional Provisions) Act 1997
).
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