Document ID: chunk:federal_register_of_legislation:C2018A00014:clause:1_20:p2
Version: federal_register_of_legislation:C2018A00014
Segment Type: clause
Provision Reference: sch 1 cl 20 (pt 2/2)
Character Range: 19827–20900

of trading stock at tax‑neutral amount);
 (c) subsection 701‑35(5) (setting value of registered emissions unit at tax‑neutral amount).
Note: This subsection does not affect the application of subsection 701‑1(1) (the single entity rule).
 (4) Subsection (5) applies if:
 (a) an entity (the higher level entity) holds *membership interests in the joining entity (whether directly or through one or more interposed entities) at a time during the period mentioned in paragraph (1)(b); and
 (b) the higher level entity becomes a *subsidiary member of the *consolidated group at the joining time; and
 (c) the requirement in paragraph (1)(b) is not satisfied (disregarding subsection (5)); and
 (d) the requirement in paragraph (1)(b) would be satisfied if the reference in paragraph (1)(b) to membership interests in the joining entity included a reference to membership interests in the higher level entity.
 (5) Treat the reference in paragraph (1)(b) to *membership interests in the joining entity as including a reference to membership interests in the higher level entity.