Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:13_1:p5
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 13 cl 1 (pt 5/10)
Character Range: 234115–236984

company

Relationship between subsections (2), (3) and (4)

 (5) Subsection (2) or (3), and not subsection (4), is relevant for identifying the test company for the focal company if the focal company made the loss apart from a transfer under Subdivision 707‑A, and later transferred the loss to itself under that Subdivision.

Change of head company

 (6) If, under section 719‑90, the focal company is taken to have made the loss because:
 (a) a company (the first head company) other than the focal company made the loss apart from that section and either:
 (i) was the *head company of a *MEC group at any time during the income year for which it made the loss; or
 (ii) became the head company of a MEC group after that income year (without having been a *subsidiary member of the group before becoming the head company); and
 (b) the focal company was later the head company of the MEC group;
the test company for the focal company is the company that is the test company for the first head company.

Note: Section 719‑90 applies if there is a change in the head company of a MEC group, treating the later head company as if what had happened to the earlier head company had happened to the later head company.

 (7) Subsections (2), (3) and (4) and section 719‑90 have effect subject to subsection (6) of this section.

719‑270  Assumptions about the test company having made the loss for an income year

If test company was top company for focal company's MEC group

 (1) If the test company was the *top company for a *MEC group and the focal company is or was the *head company of that MEC group, assume that the test company made the loss for an income year starting at the relevant time shown in the table.

Start of income year for which test company is assumed to have made loss
                                                                          If:                                                                                                      The relevant time is:
  1                                                                       The focal company made the loss apart from Subdivision 707‑A                                             The start of the income year for which the focal company made the loss
  2                                                                       The focal company made the loss because it was transferred to the focal company under Subdivision 707‑A  The time of the transfer

Note: Subsection (1) applies even if the test company is still the top company for the MEC group at the end of the claim year.

If test company is focal company or first head company

 (2) If the test company is:
 (a) the focal company; or
 (b) the first head company identified in subsection 719‑265(6) by reference to the focal company;
assume that the test company made the loss for an income year starting at the