Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p64
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 64/66)
Character Range: 6486960–6489511

was not a member of the group; or
 (d) the realised interest was an equity or loan interest in an entity that owned at that time an external indirect equity or loan interest in a subsidiary member of a MEC group (except an eligible tier‑1 company); or
 (e) the realised interest was an equity or loan interest, or an *indirect equity or loan interest, in an eligible tier‑1 company that was a member of a MEC group at that time.
 (3) An *equity or loan interest in an entity (the test entity) is an external indirect equity or loan interest in a *subsidiary member of a *MEC 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 subsidiary member; or
 (b) the test entity owns an equity or loan interest that is an external indirect equity or loan interest in the subsidiary 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 *MEC 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 MEC group.

719‑780  Exception for pooled interests in eligible tier‑1 companies
  The first condition in section 719‑775 cannot be satisfied, because of a *MEC group, at a time when the realised interest was a *pooled interest in an *eligible tier‑1 company that is a member of the group.

719‑785  Exception for interests in top company
  The first condition in section 719‑775 cannot be satisfied, because of a *MEC group, at a time when:
 (a) the first entity was the *top company for the MEC group; or
 (b) the realised interest was an *indirect equity or loan interest in the top company for the MEC group.

719‑790  Exception for interests in entity leaving MEC 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 *MEC group;
the first condition in section 719‑775 cannot be satisfied, because of that MEC group, at a time when the first entity was a member of the group, unless the interest needed to be disregarded under section 719‑30 (about employee shares) in order for the first entity to be