New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)

Schedule 2   Consolidation: group continues when shelf company becomes new head company

Income Tax Assessment Act 1997

4   Subsection 124-380(5)

Repeal the subsection, substitute:

Choice to be made by interposed company

(5) If:

(a) immediately before the completion time, the original company is the*head company of a*consolidated group; and

(b) immediately after the completion time, the interposed company is the head company of a*consolidatable group consisting only of itself and the*members of the group immediately before the completion time;

the interposed company must choose that the consolidated group is to continue in existence at and after the completion time.

Note: Sections 703-65 to 703-80 deal with the effects of the choice for the consolidated group.

(6) If subsection (5) of this section does not apply, the interposed company must choose that section 124-385 apply.

(7) In either case, the interposed company must make the choice within 2 months after the completion time, or within such further time as the Commissioner allows. The choice cannot be revoked.

Note: This is an exception to the general rule about choices in section 103-25.