Tax Laws Amendment (2010 Measures No. 1) Act 2010 (56 of 2010)

Schedule 5   Consolidation

Part 18   Choice to consolidate

Income Tax Assessment Act 1997

183   Before section 719-80 (after the group heading)

Insert:

719-76 Notice of choice to consolidate

(1) This section applies if:

(a) a *MEC group comes into existence on the day specified in a choice under section 719-50; and

(b) subsection 719-75(1), (2) or (3) would apply to the MEC group in relation to the *income year of a company in which the specified day occurred; and

(c) in a case where subsection 719-75(1) or (2) applies - the company will be the *head company of the group as at the end of the income year; and

(d) in a case where subsection 719-75(3) applies - the company will be the head company of the group immediately before the group ceased to exist.

(2) The company must give the Commissioner a notice in the *approved form containing the following information:

(a) the identity of the company;

(b) the day specified in the choice on which the *MEC group comes into existence;

(c) the identity of each *eligible tier-1 company of the *top company in relation to the MEC group on that day;

(d) the identity of each *subsidiary member of the group on that day;

(e) the identity of each entity that was a subsidiary member of the group on that day but was not such a subsidiary member when the notice is given;

(f) the identity of each entity that was not a subsidiary member of the group on that day but was such a subsidiary member when the notice is given;

(g) the identity of each entity that became a subsidiary member of the group after that day but was not such a subsidiary member when the notice is given.

(3) The notice must be given no later than:

(a) if the company is required to give the Commissioner its *income tax return for the income year during which that day occurs - the day on which the company gives the Commissioner that income tax return; or

(b) otherwise - the last day in the period within which the company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.

719-77 Notice in relation to new eligible tier-1 members etc.

(1) This section applies if:

(a) a *MEC group consists of the members of a *potential MEC group derived from one or more *eligible tier-1 companies of a *top company; and

(b) one or more other companies become eligible tier-1 companies of the top company at a time because of a choice under subsection 719-5(4).

(2) The *head company of the *MEC group must give the Commissioner a notice in the *approved form containing the following information:

(a) the identity of the head company;

(b) the time mentioned in paragraph (1)(b);

(c) the identity of each entity that became an *eligible tier-1 company of the *top company in relation to the MEC group at that time because of the choice;

(d) the identity of each entity that became a *subsidiary member of the group at that time because of the choice;

(e) the identity of each entity that was a subsidiary member of the group at that time but was not such a subsidiary member when the notice is given.

(3) The notice must be given no later than:

(a) if the *head company is required to give the Commissioner its *income tax return for the income year during which that time occurs - the day on which the head company gives the Commissioner that income tax return; or

(b) otherwise - the last day in the period within which the head company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.

719-78 Notice of special conversion event

(1) This section applies if a *MEC group comes into existence at the time because of a choice under paragraph 719-40(e).

(2) The company mentioned in paragraph 719-40(b) must give the Commissioner a notice in the *approved form containing the following information:

(a) the identity of the company;

(b) the time at which the *MEC group comes into existence;

(c) the identity of each *eligible tier-1 company of the *top company in relation to the MEC group on that day;

(d) the identity of each *subsidiary member of the group at that time;

(e) the identity of each entity that was a subsidiary member of the group at that time but was not such a subsidiary member when the notice is given;

(f) the identity of each entity that was not a subsidiary member of the group at that time but was such a subsidiary member when the notice is given;

(g) the identity of each entity that became a subsidiary member of the group after that time but was not such a subsidiary member when the notice is given.

(3) The notice must be given no later than:

(a) if the company is required to give the Commissioner its *income tax return for the income year during which that time occurs - the day on which the company gives the Commissioner that income tax return; or

(b) otherwise - the last day in the period within which the company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.

719-79 Notice of appointment of provisional head company after formation of group

(1) This section applies if an entity is appointed to be the *provisional head company of a *MEC group because of a choice under subsection 719-60(3).

(2) The *provisional head company must give the Commissioner a notice in the *approved form containing the following information:

(a) the identity of the provisional head company;

(b) the day on which the choice was made;

(c) the day on which the *cessation event mentioned in subsection 719-60(3) occurs.

(3) The notice must be given no later than:

(a) if:

(i) the group came into existence because of a choice under section 719-50; and

(ii) the event happens more than 28 days before a notice under section 719-76 in relation to the choice is given;

the day on which the notice mentioned in subparagraph (ii) is given; or

(b) in any other case - 28 days after the *cessation event.