Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p62
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 62/66)
Character Range: 6482149–6484825

company.
 (3) In determining what is a relevant equity interest or relevant debt interest that an entity has in the *head company just before the *alteration time, make the assumptions in subsection 719‑720(5).

719‑735  Some alteration times affect only pooled interests
 (1) Sections 165‑115ZA and 165‑115ZB do not apply in relation to an *alteration time that happens for the *head company of a *MEC group because of subsection 719‑725(4) (trigger time for MEC group cost setting rules: pooling cases).
 (2) Instead, Subdivision 719‑K applies to the *MEC group, in relation to the trigger time, on the basis that:
 (a) what would, apart from this section, be the pooled cost amount for the purposes of the formulas in subsections 719‑570(1) and (2) is reduced by the amount of the *head company's overall loss under section 165‑115R or 165‑115S at that alteration time; but
 (b) paragraph (a) of this subsection only affects the application of those formulas because of subsection 719‑570(3) (to work out the *reduced cost base of a *membership interest).

719‑740  Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest
 (1) For the purposes of Subdivision 165‑CD, treat the *head company of a *MEC group as not having a relevant equity interest in a *loss company at a particular time if:
 (a) the *top company of the group is a *widely held company at that time; and
 (b) because of subsections 165‑115X(2A), (2B) and (2C), the top company does not have a relevant equity interest under section 165‑115X in the loss company at that time.
 (2) For the purposes of paragraph (1)(b), disregard the operation of subsection 701‑1(1) (the single entity rule) in determining whether subsection 165‑115X(2C) has the effect that the *top company has the relevant equity interest mentioned in that paragraph.
 (3) For the purposes of Subdivision 165‑CD, treat the *head company of a *MEC group as not having a relevant debt interest in a *loss company at a particular time if:
 (a) the *top company of the group is a *widely held company at that time; and
 (b) because of subsections 165‑115Y(3A), (3B) and (3C), the top company does not have a relevant debt interest under section 165‑115Y in the loss company at that time.

How indirect value shifting rules apply to a MEC group

719‑755  Effect on MEC group cost setting rules if head company is losing entity or gaining entity for indirect value shift
 (1) This section has effect for the purposes of working out the consequences (if any) of an *indirect value shift if the *losing entity or *gaining entity is the *head company of a *MEC group.