Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 10/10)
Character Range: 5815302–5818681

2                                                                                                                                                                            Column 3                                                                                     Column 4
Entity's role in relation to group               Income tax treatment requirements                                                                                                                                                   Australian residence requirements                                                            Ownership requirements
 1 Head company                                  The entity must be a company (but not one covered by section 703‑20) that has all or some of its taxable income (if any) taxed at a rate that is or equals the *corporate tax rate  The entity must be an Australian resident (but not a *prescribed dual resident)              The entity must not be a *wholly‑owned subsidiary of another entity that meets the requirements in columns 2 and 3 of this item or, if it is, it must not be a subsidiary member of a *consolidatable group or *consolidated group
 2 Subsidiary member                             The requirements are that:                                                                                                                                                          The entity must:                                                                             The entity must be a *wholly‑owned subsidiary of the head company of the group and, if there are interposed between them any entities, the set of requirements in section 703‑45, section 701C‑10 of the Income Tax (Transitional Provisions) Act 1997 or section 701C‑15 of that Act must be met
                                                 (a) the entity must be a company, trust or partnership (but not one covered by section 703‑20); and                                                                                 (a) be an Australian resident (but not a *prescribed dual resident), if it is a company; or
                                                 (b) if the entity is a company—all or some of its taxable income (if any) must be taxable apart from this Part at a rate that is or equals the *corporate tax rate; and             (b) comply with section 703‑25, if it is a trust; or
                                                 (c) the entity must not be a non‑profit company (as defined in the Income Tax Rates Act 1986)                                                                                       (c) be a partnership

703‑20  Certain entities that cannot be members of a consolidated group or consolidatable group
 (1) The object of this section is to specify certain entities that cannot be *members of a *consolidated group because of the way their income is treated for income tax purposes.
 (2) An entity of a kind specified in an item of the table cannot be a *member of a *consolidated group or a *consolidatable group at a time in an income year if the conditions specified in the item exist:

Certain entities that cannot be members of a consolidated or consolidatable group
Item                                                                               An entity of this kind:  Cannot be a member of a consolidated group or consolidatable group if: