Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p36
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 36/66)
Character Range: 6415439–6418208

701‑40 (Exit history rule) does not apply. See instead section 719‑125.
Note 2: Another example of the effect of this subsection is that Division 711 (cost setting on exit) does not apply.
 (4) Subsection (3) does not apply if:
 (a) the old group mentioned in subsection 719‑120(1) is a *consolidated group; and
 (b) the new group mentioned in subsection 719‑120(1) is a *MEC group; and
 (c) the entity ceasing to be a *member of the old group becomes an *eligible tier‑1 company in respect of the new group.
 (5) The provisions are as follows:
 (a) Subdivision 104‑L;
 (b) section 165‑212E;
 (c) this Part (other than this Subdivision);
 (d) Part 3‑90 of the Income Tax (Transitional Provisions) Act 1997.

719‑135  Provisions of this Part applying to conversion despite section 719‑130
 (1) This section applies despite subsections 719‑130(1) and (3).
 (2) If the new group is a *consolidated group, the following provisions may apply on an entity ceasing to be a *member of the old group:
 (a) Subdivision 719‑K;
 (b) any other provision of this Part, to the extent that the application of the provision is necessary for the application of Subdivision 719‑K.

719‑140  Other provisions of this Part not applying to conversion
  If the new group is a *consolidated group, the following provisions do not apply merely because the old group ceases to exist at the conversion time (or merely because the *potential MEC group of which the old group consisted ceases to exist at that time):
 (a) section 719‑280;
 (b) section 719‑465;
 (c) section 719‑705;
 (d) section 719‑725;
 (e) any other provision of this Part, to the extent that the application of the provision is necessary for the application of any of those sections.

Subdivision 719‑C—MEC group cost setting rules: joining cases

Guide to Subdivision 719‑C

719‑150  What this Subdivision is about
      When an entity (other than an eligible tier‑1 company) becomes a subsidiary member of a MEC group, the tax cost of its assets is set at a tax cost setting amount that is worked out in accordance with Divisions 701 and 705 as modified by this Subdivision. Assets of eligible tier‑1 companies becoming members of a MEC group do not have their tax cost set.

Table of sections

Application and object
719‑155 Object of this Subdivision

Modified application of tax cost setting rules for joining
719‑160 Tax cost setting rules for joining have effect with modifications
719‑165 Trading stock value and registered emissions unit value not set for assets of eligible tier‑1 companies
719‑170 Modified effect of subsections 705‑175(1) and 705‑185(1)

Application and object

719‑155  Object of this Subdivision
  The object of this Subdivision is to modify the tax cost setting rules in Divisions 701 and 705 so