Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_2:p6
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 2 (pt 6/7)
Character Range: 179930–182522

an equity or loan interest that is an external indirect equity or loan interest in the subsidiary member because of one or more other applications of this subsection.

 (4) The second condition is that, at the same or a different time during the ownership period:
 (a) the owner was, or *controlled (for value shifting purposes), the *head company of a *MEC group because of which the first condition is satisfied; or
 (b) the owner was an *associate of an entity that, at the same or a different time during the ownership period, was, or controlled (for value shifting purposes), the head company of such a MEC group.

719‑780  Exception for pooled interests in eligible tier‑1 companies

  The first condition in section 719‑775 cannot be satisfied, because of a *MEC group, at a time when the realised interest was a *pooled interest in an *eligible tier‑1 company that is a member of the group.

719‑785  Exception for interests in top company

  The first condition in section 719‑775 cannot be satisfied, because of a *MEC group, at a time when:
 (a) the first entity was the *top company for the MEC group; or
 (b) the realised interest was an *indirect equity or loan interest in the top company for the MEC group.

719‑790  Exception for interests in entity leaving MEC group

Membership interests in leaving entity

 (1) If:
 (a) the realised interest is a *membership interest; and
 (b) during the ownership period the first entity ceased to be a *subsidiary member of a *MEC group;
the first condition in section 719‑775 cannot be satisfied, because of that MEC group, at a time when the first entity was a member of the group, unless the interest needed to be disregarded under section 719‑30 (about employee shares) in order for the first entity to be a member of the group at that time.

Liabilities owed by leaving entity

 (2) If the realised interest:
 (a) consists of a liability owed by the first entity to the owner; and
 (b) became an asset of the owner because subsection 701‑1(1) (the single entity rule) ceased to apply to the first entity when it ceased to be a *subsidiary member of a *MEC group;
the first condition in section 719‑775 cannot be satisfied, because of that MEC group, at a time when the first entity was a member of the group.

719‑795  Exception if loss attributable to certain matters

 (1) The loss is not reduced if all of it can be shown to be attributable to things other than these:
 (a) something that would be reflected in what would, apart from this Part, be an overall loss under section 165‑115R or 165‑115S, of a *member of a *MEC