Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p55
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 55/66)
Character Range: 6465097–6467682

head company is taken to meet those conditions.

719‑460  Assumptions about nothing happening to affect direct and indirect ownership of the test company
 (1) This section sets out an assumption that must be made whenever there is a change in the identity of the *top company for the *MEC group during the *ownership test period.
 (2) Assume that after the change nothing happens in relation to *membership interests or voting power in the following entities that would affect whether the test company would meet the conditions in section 165‑123:
 (a) the company that was the *top company for the *MEC group before the change;
 (b) an entity (if any) that at the time of the change was interposed between:
 (i) the company that was the top company for the MEC group before the change; and
 (ii) the company that became the top company for the MEC group as part of the change.

719‑465  Assumptions about the test company failing to meet the conditions in section 165‑123
 (1) Assume that the test company fails to meet the conditions in section 165‑123 at the time an event described in subsection (2), (3) or (4) happens after the start of the *ownership test period in relation to:
 (a) the *MEC group; or
 (b) the *potential MEC group whose membership was the same as the membership of the MEC group.
Note: If the test company is assumed to fail to meet the conditions in section 165‑123, the head company of the MEC group is taken (under section 719‑455) to have failed to meet those conditions.
 (2) One event is the *potential MEC group ceasing to exist.
 (3) Another event is something happening that meets these conditions:
 (a) the thing happens at a time in relation to *membership interests in one or more of these entities:
 (i) a company that was just before that time a *member of the *MEC group and an *eligible tier‑1 company of the *top company for the MEC group;
 (ii) an entity interposed between a company described in subparagraph (i) and the company that was the top company for the group just before that time;
 (b) the thing does not cause the *potential MEC group to cease to exist but does cause a change in the identity of the top company for the potential MEC group.
 (4) Another event is the *MEC group ceasing to exist because there ceases to be a *provisional head company of the group.

Other causes of failure to meet conditions in section 165‑123
 (5) To avoid doubt, this section does not limit the circumstances in which the test company would have failed to meet the conditions in section 165‑123.

Subdivision 719‑J—MEC group cost setting rules: