Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_2:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 2 (pt 1/7)
Character Range: 167759–170597

2  After Subdivision 719‑K
Insert:

Subdivision 719‑T—Interactions between this Part and other areas of the income tax law: special rules for MEC groups

Table of sections

How Subdivision 165‑CC applies to MEC groups

719‑700 Changeover times under section 165‑115C or 165‑115D
719‑705 Additional changeover times for head company of MEC group

How Subdivision 165‑CD applies to MEC groups

719‑720 Alteration times under section 165‑115L or 165‑115M
719‑725 Additional alteration times for head company of MEC group
719‑730 Some alteration times only affect interests in top company
719‑735 Some alteration times affect only pooled interests

How indirect value shifting rules apply to a MEC group

719‑755 Effect on MEC group cost setting rules if head company is losing entity or gaining entity for indirect value shift

Cancelling loss on realisation event for direct or indirect interest in a subsidiary member of a MEC group

719‑775 Cancellation of loss
719‑780 Exception for pooled interests in eligible tier‑1 companies
719‑785 Exception for interests in top company
719‑790 Exception for interests in entity leaving MEC group
719‑795 Exception if loss attributable to certain matters

How Subdivision 165‑CC applies to MEC groups

719‑700  Changeover times under section 165‑115C or 165‑115D

 (1) This section has effect for the purposes of determining whether a time (the test time) is a *changeover time under section 165‑115C (about changes in ownership) or 165‑115D (about changes in control) in respect of the *head company of a *MEC group.

Modified meaning of reference time

 (2) The reference time is:
 (a) if no *changeover time has occurred in respect of the head company since the group came into existence and before the test time—when the group came into existence; or
 (b) otherwise—the time just after the last such changeover time.

 (3) Subsection (2) of this section has effect despite subsection 165‑115A(2A).

Assumptions to make

 (4) Assume that, while the *MEC group exists:
 (a) the *top company for the group holds and beneficially owns all the *membership interests in the *head company (instead of whoever actually does); and
 (b) those membership interests remain the same; and
 (c) the top company directly controls the voting power in the head company.

719‑705  Additional changeover times for head company of MEC group

 (1) The time when a *potential MEC group ceases to exist is a changeover time in respect of the *head company of a *MEC group if, just before that time, the potential MEC group's membership was the same as the membership of the MEC group.

Note: The changeover times in subsections (1), (2) and (3) are based on the events described in subsections 719‑280(2), (3) and (4), each of which causes the test company referred to in section 719‑280 to be assumed to fail