Document ID: chunk:federal_register_of_legislation:C2004A04248:body:0:p4
Version: federal_register_of_legislation:C2004A04248
Segment Type: other
Provision Reference: 
Character Range: 8754–11399

section is inserted:

Merging entities; merged entity; merger day

"3A.(1) For the purposes of this Act:

    (a) Telecom and OTC are a set of merging entities; and

    (b) AOTC is the merged entity in relation to that set; and

    (c) the succession day is the merger day in relation to that set and that merged entity.

"(2) Subject to subsection (3), the regulations may declare that, for the purposes of this Act:

    (a) 2 or more specified entities are a set of merging entities; and

    (b) a specified entity (being one of those entities or a different entity) is the merged entity in relation to that set; and

    (c) a specified day that is:

         (i) on or after the day on which the regulation making the declaration takes effect; and

         (ii) after the succession day, but not more than 12 months after that day;

is the merger day in relation to that set and that merged entity.

"(3) A set of merging entities that is specified in a declaration under subsection (2) must:

    (a) consist of:

         (i) at least one entity that, immediately before the succession day, was a wholly-owned subsidiary of Telecom; and

         (ii) at least one entity that, immediately before that day, was a wholly-owned subsidiary of OTC; or

    (b) consist of AOTC and at least one entity that, immediately before the succession day, was a wholly-owned subsidiary of Telecom or of OTC.

"(4) The regulations may make 2 or more different declarations under subsection (2).

"(5) Subject to subsection (3), but without limiting the generality of subsection (2), a set of merging entities may include the merged entity in relation to another set of merging entities.

"(6) Regulations may be made for the purposes of subsection (2) at any time before the end of the 12 months beginning on the succession day, but not later.".

6. Section 28 of the Principal Act is repealed and the following section is substituted:

Merged entity taken to be the same body, for tax purposes, as merging entities

"28.(1) Where:

    (a) 2 or more entities are a set of merging entities; and

    (b) an entity is the merged entity in relation to that set; subsection (2) has effect, on and after the merger day in relation to that set and that merged entity, even if any of the entities concerned later ceases to be a group company.

"(2) For the purposes only of the application of the laws of the Commonwealth, of the States and of the Territories relating to taxation:

    (a) the merging entities are taken to be the same body as the merged entity and to continue in existence under the merged entity's name; and

    (b) any provisions of