Document ID: chunk:federal_register_of_legislation:C2011C00698:clause:5_15:p2
Version: federal_register_of_legislation:C2011C00698
Segment Type: clause
Provision Reference: sch 5 cl 15 (pt 2/3)
Character Range: 72530–75253

at and after the conversion time.

 (4) Subsections (1) and (2) have effect subject to:
 (a) section 701‑40 (Exit history rule); and
 (b) 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 Subdivision 717‑E (about transferring to a company leaving a consolidated group various surpluses under the CFC rules in Part X of the Income Tax Assessment Act 1936).

719‑130  Provisions of this Part not to apply to conversion

 (1) A provision mentioned in subsection (5) that applies on an entity becoming a *member of a *consolidated group or *MEC group does not apply to an entity becoming such a member because of a situation described in subsection 719‑120(1), unless the provision is expressed to apply despite this subsection.

Note 1: An example of the effect of this subsection is that section 701‑5 (entry history rule) does not apply. See instead section 719‑125.

Note 2: Further examples of the effect of this subsection are that Division 705 (cost setting on entry) and Division 707 (losses) do not apply.

 (2) Subsection (1) does not affect the application of subsection 701‑1(1) (the single entity rule).

 (3) A provision mentioned in subsection (5) that applies on an entity ceasing to be a *member of a *consolidated group or *MEC group does not apply to an entity ceasing being such a member because of a situation described in subsection 719‑120(1), unless the provision is expressed to apply despite this subsection.

Note 1: An example of the effect of this subsection is that section 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