Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_6:p13
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 13/26)
Character Range: 206684–209596

resident), if it is a company; or     (a) a *wholly‑owned subsidiary of any of those *eligible tier‑1 companies; or
The entity must not be a non‑profit company (as defined in the Income Tax Rates Act 1986)                                                                                                                                     (b) meet the conditions in item 1, 2 or 3 of the table in section 703‑25, if it is a trust; or  (b) an entity that would be covered by paragraph (a), if it were assumed that all of the membership interests that are beneficially owned by any of those eligible tier‑1 companies were owned by a single one of those eligible tier‑1 companies
                                                                                                                                                                                                                              (c) be a partnership

 (2) For the purposes of column 3 of the table, if there are one or more entities interposed between an entity (the test entity) and an eligible tier‑1 company, the test entity can be a wholly‑owned subsidiary of the eligible tier‑1 company only if each of the interposed entities:
 (a) meets the conditions in columns 1 and 2 of the table; or
 (b) holds membership interests only as a nominee of one or more entities each of which is:
 (i) an eligible tier‑1 company of the top company; or
 (ii) a wholly‑owned subsidiary of an eligible tier‑1 company of the top company, being a subsidiary that meets the conditions in columns 1 and 2 of the table.

 (3) For the purposes of subparagraph (2)(b)(ii), in determining whether an entity is a wholly‑owned subsidiary of an eligible *tier‑1 company of the *top company, assume that all of the *membership interests that are beneficially owned by eligible tier‑1 companies of the top company were owned by a single eligible tier‑1 company of the top company.

Entities to which subsection (4) applies

 (4) This subsection applies to an entity (the test entity) if:
 (a) the test entity is a company; and
 (b) one or more entities are interposed between the test entity and an *eligible tier‑1 company of the *top company; and
 (c) at least one of those interposed entities is:
 (i) a company that is a foreign resident; or
 (ii) a trust that does not meet the conditions in item 1, 2 or 3 of the table in section 703‑25; and
 (d) each interposed entity is one of the following:
 (i) an entity that, because of one or more previous applications of subsection (1), is a member of the *potential MEC group concerned;
 (ii) a company to which subparagraph (c)(i) applies;
 (iii) a trust to which subparagraph (c)(ii) applies;
 (iv) an entity that holds *membership interests only as a nominee of one or more entities each of which is mentioned in subparagraph (i), (ii) or (iii) of this paragraph;
 (v) a partnership, where each partner is a company