Document ID: chunk:federal_register_of_legislation:C2005C00282:clause:4_73r:p2
Version: federal_register_of_legislation:C2005C00282
Segment Type: clause
Provision Reference: sch 4 cl 73R (pt 2/2)
Character Range: 111005–112704

period when the secondary group member stops being grouped with a primary group member, the secondary group member has a viable business.

Exception: extending group membership period

 (4) The group membership period of a group member of a particular group (the current group) is extended to include its history period with its former group (see subsection (5)) if, when the company became a group member of the current group, it did so with a viable business.

Viable business

 (5) A company stops being or starts being a group member of a group with a viable business if:
 (a) sufficient assets (including assets that have been used in carrying on research and development activities) are transferred under the transactions involved in the change of control to allow the continued operation of a business; and
 (b) the person or persons that disposed of control of the company agree in writing with the person or persons that gain control that this subsection should apply; and
 (c) the person or persons that disposed of control of the company provide written details of incremental expenditure incurred by the company during the period (its history period) it was a group member of its former group.

Note: The definition of person includes trusts, partnerships and other entities as well as companies: see section 73H.

 (6) The written agreement referred to in paragraph (5)(b) must be made, and the written details referred to in paragraph (5)(c) must be provided:
 (a) for a change of control occurring before 1 July 2002—by 30 June 2002; or
 (b) otherwise—by the end of the year of income in which the change of control occurs; or
 (c) within a further time allowed by the Commissioner.