Private ruling: Change in identity of top company
Date of advice: 20 September 2018
Published: October 2018

Ruling: The Commissioner issued a Private Binding Ruling in relation to the application or otherwise of section 719-280 to a multiple entry consolidated (MEC) group. | Where the section applies, the MEC group is assumed to fail in meeting the conditions of the continuity of ownership (COT) loss recoupment rules at a certain time. | The relevant time is when a thing happens to one or more of the following entities: | ● a company that was a member of the MEC group and was an eligible tier-1 company of the top company for the group, and / or | ● an entity interposed between a company described above and the company that was the top company for the group before the time of the thing happened. | The section applies in circumstances where: | ● the thing does not cause the potential MEC group to cease to exist, | ● however, the thing causes a change in identity in the top company for the MEC group.