Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p19
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 19/66)
Character Range: 6372684–6376038

tax return; or
 (b) otherwise—the last day in the period within which that company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.
 (6A) The company is:
 (a) in a case where subsection 719‑75(1) or (2) applies—the company that will be the *head company of the group as at the end of the income year; and
 (b) in a case where subsection 719‑75(3) applies—the company that will be the head company of the group immediately before the group ceased to exist.

Continued existence of MEC group
 (7) If a MEC group (the first MEC group) consists of the members of a potential MEC group derived from one or more eligible tier‑1 companies of a top company, the first MEC group continues to exist until:
 (a) the potential MEC group ceases to exist; or
 (b) there is a change in the identity of the top company, and the eligible tier‑1 companies that were members of the first MEC group immediately before the change become members of another MEC group immediately after the change; or
 (c) there ceases to be a provisional head company of the first MEC group.
The first MEC group ceases to exist when one of those events happens.
Note: Subsection 719‑10(7) sets out the circumstances in which the potential MEC group ceases to exist.

719‑10  What is a potential MEC group?
 (1) A potential MEC group derived from one or more *eligible tier‑1 companies of a *top company consists of the following members:
 (a) those eligible tier‑1 companies;
 (b) all of the other entities (if any) which:
 (i) meet the requirements of the table; or
 (ii) are entities for which the requirements in section 701C‑10 of the Income Tax (Transitional Provisions) Act 1997 are met; or
 (iii) are entities for which the requirements in section 701C‑15 of the Income Tax (Transitional Provisions) Act 1997 are met.

Requirements for other entities
Column 1                                                                                                                                                                                                                Column 2                                                                                        Column 3
Income tax treatment requirements                                                                                                                                                                                       Australian residence requirements                                                               Ownership requirements
The entity must be a company, trust or partnership and, if it is a company, all or some of its taxable income (if any) must have been taxable at a rate that is or equals the *corporate tax rate apart from this Part  The entity must:                                                                                The entity must be:
The entity must not be covered by an item in the table in section 703‑20                                                                                                                                                (a) be an Australian resident (but not a *prescribed dual resident), if it is a company; or     (a) a *wholly‑owned subsidiary of any of those *eligible tier‑1 companies; or
The entity must not be a non‑profit company (as defined in the Income Tax Rates Act 1986)