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 6/6)
Character Range: 6051506–6052979

subsidiary are exempting entities
709‑175 Head company is former exempting entity

Operative provisions

709‑155  Testing consolidated groups
 (1) To determine whether a *consolidated group is an *exempting entity or *former exempting entity, the tests in Division 208 are applied to the *head company of the group.
 (2) However, there are some additional rules that can alter the way that Division 208 applies to a *consolidated group. These are set out in sections 709‑160 to 709‑175.
 (3) In applying those rules to an entity that is a *member of a *consolidated group:
 (a) Division 208 is to be applied before those rules; and
 (b) that Division is to be applied just after the entity became a member of the group but, for a *subsidiary member, it is to be applied on the assumption that the subsidiary was not a member of the group at that time.
 (4) Except as mentioned in paragraph (3)(b), Division 208 has no application to a *subsidiary member of a *consolidated group.

709‑160  Subsidiary member is exempting entity
 (1) This section operates if:
 (a) the *head company of a *consolidated group is neither an exempting entity nor a *former exempting entity; and
 (b) a *corporate tax entity becomes a *subsidiary member of the group at a time (the joining time); and
 (c) the entity is an *exempting entity at the joining time.
 (2) These rules apply to the *consolidated group.

Rules applying to *consolidated group
Item                                   Rule