Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p10
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 10/17)
Character Range: 587660–590224

asset after certain roll‑overs
701‑10 Interpretation

701‑1  Transitional group and transitional entity

Group formed on 1 July 2002
 (1) If a consolidated group came into existence on 1 July 2002:
 (a) the group is a transitional group; and
 (b) each entity that became a subsidiary member of the group on the day it came into existence is a transitional entity.

Group formed after 1 July 2002 but before 1 July 2003
 (2) If a consolidated group came into existence after 1 July 2002 but before 1 July 2003:
 (a) the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity; and
 (b) an entity is a transitional entity if:
 (i) at no time after 1 July 2002 and before the group came into existence was the entity a wholly‑owned subsidiary of the entity (the future head company) that became the head company of the group; or
 (ii) at some time during that period, the entity was a wholly‑owned subsidiary of the future head company and it remained such from the earliest time after 1 July 2002 when it was a wholly‑owned subsidiary of the future head company until the group came into existence.

Group formed during financial year starting on 1 July 2003
 (3) If a consolidated group came into existence during the financial year starting on 1 July 2003:
 (a) the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity; and
 (b) an entity is a transitional entity if:
 (i) just before 1 July 2003, it was a wholly‑owned subsidiary of the future head company; and
 (ii) it remained such from the earliest time after 1 July 2002 when it was a wholly‑owned subsidiary of the future head company until the group came into existence.

701‑5  Chosen transitional entity
 (1) If a group is a transitional group, its head company may, subject to subsection (3), choose that the group's transitional entity is a chosen transitional entity, or one or more of the group's transitional entities are chosen transitional entities.

Period for making choice
 (2) The choice must be made by the later of:
 (a) the day on which the head company must give the notice under section 703‑58 of the Income Tax Assessment Act 1997 (notice of choice to consolidate); and
 (b) the end of 31 December 2005.

Agreement of other entities required in certain cases
 (3) If the choice is to be made after the end of the period mentioned in paragraph (2)(a) and before the end