Document ID: chunk:federal_register_of_legislation:C2010C00603:clause:1_3:p1
Version: federal_register_of_legislation:C2010C00603
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/3)
Character Range: 56237–58964

3     A provision that:                                                                               Choice about a matter described in the regulations
      (a) provides for a choice (however described); and
      (b) is a provision of regulations made for the purposes of this Act, other than this item; and
      (c) is prescribed by regulations made for the purposes of this item

Note 1: The other entity mentioned in subparagraph (1)(b)(ii) may have become a member of the group either before or at the joining time. That other entity may be either another subsidiary member of the group or the head company of the group.

Note 2: An election by an entity under section 148 of the Income Tax Assessment Act 1936 is an example of a choice under that provision (even though that section does not call the election a choice) because the entity has chosen to make the election.

Object

 (2) The main objects of this section are:
 (a) to override the inconsistency; and
 (b) to displace section 701‑5 (Entry history rule), so far as it relates to the inconsistency; and
 (c) to allow the *head company of the *consolidated group to make a choice (however described) under the choice provision.

Overriding the inconsistency

 (3) Neither of these things relating to an entity that becomes a *member of the *consolidated group at the joining time has effect for the head company core purposes set out in section 701‑1 (Single entity rule):
 (a) a choice (however described) by the entity having effect under the choice provision before that time;
 (b) the absence of such a choice.

Note: This affects all entities that become members of the consolidated group at the joining time, including the head company if the joining time is the time at which the group comes into existence.

 (4) However, if the choice provision is section 148 of the Income Tax Assessment Act 1936 (Reinsurance with non‑residents):
 (a) subsection (3) of this section does not apply in relation to reinsurance under contracts made before the joining time (but does apply in relation to reinsurance under contracts made at or after that time); and
 (b) that section applies for the head company core purposes in relation to reinsurance under a contract made before the joining time by an entity (the contracting party) that became a *member of the *consolidated group at or before the joining time:
 (i) as if the *head company of the consolidated group had made an election under that section, if the contracting party had made such an election that was relevant to working out the party's liability (if any) for income tax, or the party's *tax loss (if any), for an income year in connection with the contract; or
 (ii) as if the head company had