Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_6:p14
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 14/26)
Character Range: 209364–211919

applies;
 (iv) an entity that holds *membership interests only as a nominee of one or more entities each of which is mentioned in subparagraph (i), (ii) or (iii) of this paragraph;
 (v) a partnership, where each partner is a company that is a foreign resident or a trust that does not meet the conditions in item 1, 2 or 3 of the table in section 703‑25; and
 (e) the test entity would meet the requirements of the table in subsection (1) of this section if it were assumed that:
 (i) each interposed entity that is a company to which subparagraph (c)(i) applies were a company that met the requirements of columns 1 and 2 of the table; and
 (ii) each interposed entity that is a trust to which subparagraph (c)(ii) applies were a trust that met the requirements of columns 1 and 2 of the table.

Entities to which subsection (5) applies

 (5) This subsection applies to an entity (the test entity) if:
 (a) the test entity is a trust or a partnership; and
 (b) subsection (4) applies to one or more other entities; and
 (c) the test entity would meet the requirements of the table in subsection (1) if it were assumed that the other entity, or each of the other entities, were one of those *eligible tier‑1 companies mentioned in subsection (1).

Only one eligible tier‑1 company in a potential MEC group

 (6) To avoid doubt, if:
 (a) there is only one *eligible tier‑1 company of a *top company; and
 (b) there are no entities which meet the requirements of the table in subsection (1); and
 (c) there are no entities to which subsection (4) or (5) applies;
the *potential MEC group derived from the eligible tier‑1 company consists of the eligible tier‑1 company alone.

When potential MEC group ceases to exist

 (7) If a *potential MEC group is derived from one or more *eligible tier‑1 companies of a *top company, the potential MEC group ceases to exist when:
 (a) none of those companies are eligible tier‑1 companies of the top company; or
 (b) there is a change in the identity of the top company, and the eligible tier‑1 companies that were members of the group immediately before the change are not the same as the eligible tier‑1 companies that are members of the group immediately after the change.

Continuity of potential MEC group

 (8) If:
 (a) a *potential MEC group is derived from one or more *eligible tier‑1 companies of a *top company; and
 (b) there is a change in the identity of the top company in relation to the potential MEC group; and
 (c) the eligible tier‑1 companies that were members of the group immediately before