Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p9
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 9/31)
Character Range: 629726–632311

is a consolidated group and the test time is the time at which the group comes into existence as a consolidated group, the test time must be before 1 July 2004.

Additional requirement for consolidated groups after formation
 (8) If:
 (a) the group is a consolidated group; and
 (b) the test time is after the group comes into existence; and
 (c) at the test time, one or more of the membership interests in the test entity are held by:
 (i) a non‑resident company; or
 (ii) a non‑resident trust; or
 (iii) an entity that holds the membership interests only as a nominee of one or more entities each of which is a non‑resident company or a non‑resident trust; or
 (iv) a partnership, each of the partners in which is a non‑resident company or a non‑resident trust;
then:
 (d) from the time the group came into existence as a consolidated group until the test time, the test entity must have been a subsidiary member of the group; and
 (e) at the time the group came into existence as a consolidated group, one or more of the membership interests in the test entity must have been held by an entity of a kind mentioned in subparagraph (c)(i), (ii), (iii) or (iv).

701C‑15  Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a foreign resident and the subsidiary member is a trust or partnership
 (1) This section describes, for the purposes of item 2, column 4 of the table in subsection 703‑15(2) of the Income Tax Assessment Act 1997, a set of requirements that must be met for an entity (the test entity) to be a subsidiary member of a consolidated group or a consolidatable group at a particular time (the test time).
Note: This subsection applies in relation to a MEC group as if the reference to item 2, column 4 of the table in subsection 703‑15(2) of the Income Tax Assessment Act 1997 were a reference to subparagraph 719‑10(1)(b)(iii) of that Act (see subsection 719‑2(3) of this Act).

Test entity must be a trust or partnership
 (2) At the test time, the test entity must be a trust or partnership.

At least one interposed entity must be a company that is a subsidiary member because of section 701C‑10
 (3) At the test time, one or more of the interposed entities must be companies that are subsidiary members of the group because the set of requirements in section 701C‑10 are met.

Test entity must be a subsidiary member on assumption that head company beneficially owned all membership interests beneficially owned by subsection (3) companies
 (4) At the test time, it must be