Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:16_5:p2
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 16 cl 5 (pt 2/6)
Character Range: 262795–265417

test time, each of the interposed entities must be:
 (a) a subsidiary member of the group; or
 (b) a non‑resident company; or
 (c) a non‑resident trust; or
 (d) an entity that holds membership interests in an entity interposed between it and the test entity, or in the test entity, only as a nominee of one or more entities each of which is a member of the group, a non‑resident company or a non‑resident trust; or
 (e) a partnership, each of the partners in which is a non‑resident company or a non‑resident trust.

Test entity must be a subsidiary member on assumption that non‑resident companies and non‑resident trusts were subsidiary members

 (5) At the test time, it must be the case that the test entity would be a subsidiary member of the group if each interposed entity that is a non‑resident company or non‑resident trust were a subsidiary member of the group.

Additional requirement for consolidatable groups

 (6) If the group is a consolidatable group, the test time must be before 1 July 2004.

Additional requirement for consolidated groups at formation

 (7) If the group is a consolidated group and the test time is the time at which the group comes into existence as a consolidated group, the test time must be before 1 July 2004.

Additional requirement for consolidated groups after formation

 (8) If:
 (a) the group is a consolidated group; and
 (b) the test time is after the group comes into existence; and
 (c) at the test time, one or more of the membership interests in the test entity are held by:
 (i) a non‑resident company; or
 (ii) a non‑resident trust; or
 (iii) an entity that holds the membership interests only as a nominee of one or more entities each of which is a non‑resident company or a non‑resident trust; or
 (iv) a partnership, each of the partners in which is a non‑resident company or a non‑resident trust;
then:
 (d) from the time the group came into existence as a consolidated group until the test time, the test entity must have been a subsidiary member of the group; and
 (e) at the time the group came into existence as a consolidated group, one or more of the membership interests in the test entity must have been held by an entity of a kind mentioned in subparagraph (c)(i), (ii), (iii) or (iv).

701C‑15  Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a non‑resident and the subsidiary member is a trust or partnership

 (1) This section describes, for the purposes of item 2, column 4 of the table in subsection 703‑15(2) of the Income Tax Assessment Act 1997, a