Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p19
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 19/20)
Character Range: 6266889–6269506

interest in a subsidiary member of a consolidated group; or
 (e) all of these conditions are satisfied at that time:
 (i) the realised interest was an equity or loan interest, an *indirect equity or loan interest or an external indirect equity or loan interest, in the *head company of a consolidated group;
 (ii) the owner was not a member of the group;
 (iii) the head company was an *eligible tier‑1 company of a *top company.
 (3) An *equity or loan interest in an entity (the test entity) is an external indirect equity or loan interest in a member of a *consolidated group if, and only if, neither the owner of the interest nor the test entity is a member of the group and:
 (a) the test entity owns an equity or loan interest in the member; or
 (b) the test entity owns an equity or loan interest that is an external indirect equity or loan interest in the member because of one or more other applications of this subsection.
 (4) The second condition is that, at the same or a different time during the ownership period:
 (a) the owner was, or *controlled (for value shifting purposes), the *head company of a *consolidated group because of which the first condition is satisfied; or
 (b) the owner was an *associate of an entity that, at the same or a different time during the ownership period, was, or controlled (for value shifting purposes), the head company of such a consolidated group.

715‑615  Exception for interests in entity leaving consolidated group

Membership interests in leaving entity
 (1) If:
 (a) the realised interest is a *membership interest; and
 (b) during the ownership period the first entity ceased to be a *subsidiary member of a *consolidated group;
the first condition in section 715‑610 cannot be satisfied, because of that consolidated group, at a time when the first entity was a member of the group, unless the interest needed to be disregarded under section 703‑35 (about employee shares), or section 703‑37 (about ADI restructures), in order for the first entity to be a member of the group at that time.

Liabilities owed by leaving entity
 (2) If the realised interest:
 (a) consists of a liability owed by the first entity to the owner; and
 (b) became an asset of the owner because subsection 701‑1(1) (the single entity rule) ceased to apply to the first entity when it ceased to be a *subsidiary member of a *consolidated group;
the first condition in section 715‑610 cannot be satisfied, because of that consolidated group, at a time when the first entity was a member of the group.

715‑620  Exception if loss attributable to certain matters
 (1) The loss is not