Private ruling: Section 719-90 and pre-cessation event ruling
Date of advice: 2 September 2025
Published: 17 November 2025
Ruling period: 1 April 20XX to 31 March 20XX
Date scheme commenced: 1 April 20XX

Ruling: Q1: Does section 719-90 of the Income Tax Assessment Act 1997 (ITAA 1997) extend to a Pre-Cessation Event Ruling issued to a provisional head company of an MEC group, such that the Pre-Cessation Event Ruling will continue to apply to a new provisional head company of the same MEC group? | A1: Yes

Relevant facts and circumstances: 1. A private ruling was issued to the provisional head company (PHC) of an MEC group (Pre-Cessation Event Ruling). 2. The ruling concerned the deductibility of expenditure of one the members of the MEC group. 3. Subsequent to the ruling issuing, the PHC was changed to another Eligible Tier-1 member of the MEC group (the Cessation Event). 4. The facts of the Pre-Cessation Event Ruling were unchanged but for the change in PHC. 5. Section 719-85 of the ITAA 1997 was satisfied in respect of the change in the PHC.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 719-85 | Income Tax Assessment Act 1997 section 719-90

Reasons for decision: Summary: Subsection 719-90(1) of the ITAA 1997 will operate to extend the application of the Pre-Cessation Event Ruling to the new PHC of the MEC group.