Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:8_8:p4
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 8 cl 8 (pt 4/10)
Character Range: 110838–113644

705‑A a modified effect when a consolidated group is formed.

719‑165  Trading stock value not set for assets of eligible tier‑1 companies

  Subsection 701‑35(4) (setting value of trading stock at tax‑neutral amount) does not apply to the assets of the MEC joining entity if it is an *eligible tier‑1 company at the MEC joining time.

Subdivision 719‑F—Losses

Table of sections

719‑300 Application
719‑305 Subdivision 707‑C affects utilisation of losses made by ongoing head company while it was head company
719‑310 Adjustment of available fractions for bundles of losses previously transferred to ongoing head company
719‑315 Further adjustment of available fractions for all bundles
719‑320 Limit on utilising losses other than the prior group losses
719‑325 Cancellation of all losses in a bundle

719‑300  Application

 (1) Sections 719‑305, 719‑310, 719‑315, 719‑320 and 719‑325 operate only if:
 (a) a company (the ongoing head company) is the *head company of a *MEC group for an income year or a period in an income year; and
 (b) an event (the application event) described in subsection (2) or (3) happens at a time in the income year in relation to the group.

 (2) One application event is that another company (the new tier‑1 member) becomes both a *member of the *MEC group and an *eligible tier‑1 company of the *top company for the group.

 (3) The other application event is that the *MEC group comes into existence as a result of a *special conversion event happening to the *potential MEC group derived from the ongoing head company.

Note: This application event happens only if the ongoing head company was the head company of a consolidated group just before the special conversion event.

Exceptions for events involving subsidiary members of group

 (4) Those sections do not operate because of the event described in subsection (2) if the new tier‑1 member was a *subsidiary member of the *MEC group immediately before the event.

 (5) Those sections do not operate because of the event described in subsection (3) if all the other companies that are described in paragraph 719‑40(1)(c) and are involved in the *special conversion event were *subsidiary members of the *consolidated group just before the event.

 (6) Subsections (4) and (5) have effect despite subsection (1).

719‑305  Subdivision 707‑C affects utilisation of losses made by ongoing head company while it was head company

 (1) For income years ending after the application event happened, Subdivision 707‑C affects the *utilisation of all losses (the prior group losses) of any *sort that the ongoing head company made (apart from Subdivision 707‑A) for an income year that:
 (a) was an income year during which the *MEC group was in existence (or, if the application event involved the MEC group coming