Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 6/32)
Character Range: 7207210–7209783

and this Subdivision, be an *outward investing financial entity (non‑ADI) or *outward investing entity (ADI) for all or part of that period.
 (3) Subsection (1) does not apply if, at each time in the period mentioned in subsection (2), all the *ADIs that are *members of the group then are *specialist credit card institutions.

820‑587  Additional application of Subdivision 820‑D to MEC group that includes foreign‑controlled Australian ADI
  Subdivision 820‑D applies to the *head company of a *MEC group as if it were an *outward investing entity (ADI) for a period that is all or part of an income year if:
 (a) the head company is not an outward investing entity (ADI) for that period; and
 (b) throughout that period, at least one *member of the group is both a *foreign controlled Australian entity and an *ADI; and
 (c) throughout that period, there is at least one *eligible tier‑1 company of the *top company for the group that:
 (i) is a member of the group; and
 (ii) is not an ADI; and
 (iii) has no *wholly‑owned subsidiary that is an ADI.

820‑588  Choice to treat specialist credit card institutions as being financial entities and not ADIs
 (1) If the conditions in subsection (2) are met in relation to a *consolidated group or *MEC group and a period that is all or part of an income year, this Division (except this section) has effect as if:
 (a) none of the *members of the group were an *ADI at any time in the period; and
 (b) each member of the group that is an ADI (ignoring paragraph (a)) at any time in the period were a financial entity at that time.
Note 1: One result of this Division having effect in that way is that Subdivision 820‑D (and related provisions, such as section 820‑589) will not apply in relation to the head company, because:
(a) the head company of the group will not be classified under section 820‑583 as an outward investing entity (ADI); and
(b) section 820‑587 will not apply that Subdivision.
Note 2: Another result of this Division having effect in that way is that Subdivision 820‑B or 820‑C may apply in relation to the head company, because it may be classified under section 820‑583 as either:
(a) an outward investing financial entity (non‑ADI); or
(b) an inward investing financial entity (non‑ADI) and an inward investment vehicle (financial).
 (2) The conditions are that:
 (a) at all times in the period at least one *member of the *consolidated group or *MEC group is an *ADI; and
 (b) each ADI that is a member of the group at any time in the period is a *specialist credit card institution at that time;