Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p3
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/5)
Character Range: 57887–60525

member of a *consolidated group or *consolidatable group just because there is a trust that is not a *fixed trust interposed between the test entity and the *head company of the group.

 (2) This Part (except Division 719) operates as if the test entity were a *wholly‑owned subsidiary of the *head company if the test entity would have been a wholly‑owned subsidiary of the head company had the interposed trust been a *fixed trust and all its objects been beneficiaries.

703‑45  Entities interposed between the head company and a subsidiary member of a consolidated group

 (1) For an entity (the test entity) to be a *subsidiary member of a *consolidated group or *consolidatable group if there are one or more other entities interposed between the test entity and the *head company of the group, one of the sets of circumstances described in subsection (2), (3) or (4) must exist.

Subsidiary members or nominees interposed

 (2) One set of circumstances is that each of the interposed entities either:
 (a) is a *subsidiary member of the group; or
 (b) holds *membership interests in:
 (i) the test entity; or
 (ii) a subsidiary member of the group interposed between the *head company of the group and the test entity;
  only as a nominee of one or more entities each of which is a *member of the group.

Non‑resident interposed—test entity is a company

 (3) Another set of circumstances is that:
 (a) the test entity is a company; and
 (b) at least one of the interposed entities is:
 (i) a company (a non‑resident company) that is a foreign resident; or
 (ii) a trust (a non‑resident trust) that does not meet the requirements in any item of the table in section 703‑25; and
 (c) each of the interposed entities is:
 (i) a *subsidiary member of the group; or
 (ii) a non‑resident company; or
 (iii) a non‑resident trust; or
 (iv) an entity that holds *membership interests in an entity interposed between it and the test entity, or in the test entity, only as a nominee of one or more entities each of which is a *member of the group, a non‑resident company or a non‑resident trust; or
 (v) a partnership, each of the partners in which is a non‑resident company or a non‑resident trust; and
 (d) the test entity would be a subsidiary member of the group if each interposed entity that is a non‑resident company or non‑resident trust were a subsidiary member of the group.

Non‑resident interposed—test entity is a trust or partnership

 (4) Another set of circumstances is that:
 (a) the test entity is a trust or partnership; and
 (b) one or more of the interposed entities are companies that are *subsidiary members of the