Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p24
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 24/66)
Character Range: 6386730–6389389

that is not a *fixed trust interposed between the test entity and the company.
 (2) For the purposes of this Division, in determining whether the test entity is a *wholly‑owned subsidiary of the company, assume that the interposed trust is a *fixed trust and all its objects are beneficiaries.

719‑40  Special conversion event—potential MEC group
 (1) A special conversion event happens at a particular time to a *potential MEC group derived from an *eligible tier‑1 company of a *top company if:
 (a) at that time, the group is not a *MEC group as a result of a choice under section 719‑50; and
 (b) immediately before that time, a company is:
 (i) that eligible tier‑1 company; and
 (ii) the *head company of a *consolidated group; and
 (c) at that time, one or more other companies become eligible tier‑1 companies of the top company; and
 (d) immediately after that time, no *membership interests in the company mentioned in paragraph (b) are beneficially owned by another member of the potential MEC group derived from:
 (i) the company mentioned in paragraph (b); and
 (ii) the companies mentioned in paragraph (c); and
 (e) the company mentioned in paragraph (b) makes a choice in writing no later than the day mentioned in subsection (2):
 (i) specifying one or more of the companies mentioned in paragraph (c); and
 (ii) stating that a MEC group is to come into existence at that time as a result of the specified companies becoming eligible tier‑1 companies of the top company; and
 (f) if:
 (i) a company specified in the choice was a member of another MEC group immediately before that time; and
 (ii) all of the eligible tier‑1 companies in that other MEC group became eligible tier‑1 companies of the top company at that time;
  each eligible tier‑1 company in that other MEC group is specified in the choice.
Note: The company mentioned in paragraph (b) must give the Commissioner a notice in the approved form containing information about the special conversion event (see sections 719‑78 and 719‑80).
 (2) The day mentioned in paragraph (1)(e) is:
 (a) if the company is required to give the Commissioner its *income tax return for the income year during which that time occurs—the day on which the company gives the Commissioner that income tax return; or
 (b) otherwise—the last day in the period within which the company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.

719‑45  Application of sections 703‑20 and 703‑25
 (1) For the purposes of this Division, if an item in section 703‑20 refers to an income year, an entity is covered by that item at a particular time