Income Tax Assessment Act 1997
View history note
Hide history noteEverything that happened in relation to the *head company of the old group before the conversion time is taken instead to have happened in relation to:
(a) if the head company of the old group is the same entity as the head company of the new group - that entity in its role as head company of the new group; or
(b) otherwise - the head company of the new group (just as if the head company of the new group had been the head company of the old group at all times before the conversion time).
719-125(2)
To avoid doubt, subsection (1) also covers everything that, immediately before the conversion time, was taken to have happened in relation to the *head company of the old group because of:
(a) section 701-1 (the single entity rule); or
(b) section 701-5 (the entry history rule); or
(c) section 703-75 (about the effects of choice to continue *consolidated group after shelf company becomes new head company); or
(d) section 719-90 (about the effects of a change of head company of a *MEC group); or
(e) one or more previous applications of this Division.
719-125(3)
Subsections (1) and (2) have effect:
(a) for the *head company core purposes in relation to an income year ending after the conversion time; and
(b) for the entity core purposes in relation to an income year ending after the conversion time; and
(c) for the purposes of determining the balance of the *franking account of the head company of the new group at and after the conversion time.
719-125(4)
Subsections (1) and (2) have effect subject to:
(a) section 701-40 (Exit history rule); and
(b) a provision of this Act to which section 701-40 is subject because of section 701-85 (about exceptions to the core rules in Division 701 ).
Note:
An example of provisions covered by paragraph (b) of this subsection is Subdivision 717-E (about transferring to a company leaving a consolidated group various surpluses under the CFC rules in Part X of the Income Tax Assessment Act 1936 ).
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
