Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:8_8:p2
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 8 cl 8 (pt 2/10)
Character Range: 105871–108579

a provision of this Act to which section 701‑40 is subject because of section 701‑85 (about exceptions to the core rules in Division 701).

Note: An example of provisions covered by paragraph (b) of this subsection is section 707‑410, which ensures that section 701‑40 (Exit history rule) does not result in a leaving entity inheriting a loss of any sort.

719‑95  No consequences of old head company becoming, and new head company ceasing to be, subsidiary member of the group

 (1) A provision of this Part that applies on an entity becoming a *subsidiary member of a *MEC group does not apply to an entity being taken to have become such a member because the entity stopped being the *head company of the group as mentioned in section 719‑85, unless the provision is expressed to apply despite this subsection.

Note: An example of the effect of this subsection is that section 701‑5 (Entry history rule) does not apply. See instead section 719‑90.

 (2) To avoid doubt, subsection (1) does not affect the application of subsection 701‑1(1) (the single entity rule).

 (3) A provision of this Part that applies on an entity ceasing to be a *subsidiary member of a *MEC group does not apply to an entity being taken to cease being such a member because the entity became the *head company of the group as mentioned in section 719‑85, unless the provision is expressed to apply despite this subsection.

Note: An example of the effect of this subsection is that section 701‑40 (Exit history rule) does not apply. See instead section 719‑90.

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 Application and 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 not set for assets of eligible tier‑1 companies

[This is the end of the Guide.]

Application and object

719‑155  Application and object of this Subdivision

Application

 (1) This Subdivision applies if an entity (the MEC joining entity) becomes a *subsidiary member of a *MEC group at a time (the MEC joining time).

Object

 (2) The object of this Subdivision is to modify the tax cost setting rules