Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:7_2:p1
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 7 cl 2 (pt 1/9)
Character Range: 66251–68931

2  After Division 700
Insert:

Division 701—Modified application of provisions of Income Tax Assessment Act 1997 for certain consolidated groups formed in 2002‑3 and 2003‑4 financial years

Table of Subdivisions
701‑A Preliminary
701‑B Modified application of provisions

Subdivision 701‑A—Preliminary

Table of sections
701‑1 Transitional group and transitional entity
701‑5 Chosen transitional entity
701‑10 Interpretation

701‑1  Transitional group and transitional entity

Group formed on 1 July 2002
 (1) If a consolidated group came into existence on 1 July 2002:
 (a) the group is a transitional group; and
 (b) each entity that became a subsidiary member of the group on the day it came into existence is a transitional entity.

Group formed after 1 July 2002 but before 1 July 2003
 (2) If a consolidated group came into existence after 1 July 2002 but before 1 July 2003:
 (a) the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity; and
 (b) an entity is a transitional entity if:
 (i) at no time after 1 July 2002 and before the group came into existence was the entity a wholly‑owned subsidiary of the entity (the future head company) that became the head company of the group; or
 (ii) at some time during that period, the entity was a wholly‑owned subsidiary of the future head company and it remained such from the earliest time after 1 July 2002 when it was a wholly‑owned subsidiary of the future head company until the group came into existence.

Group formed during financial year starting on 1 July 2003
 (3) If a consolidated group came into existence during the financial year starting on 1 July 2003:
 (a) the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity; and
 (b) an entity is a transitional entity if:
 (i) just before 1 July 2003, it was a wholly‑owned subsidiary of the future head company; and
 (ii) it remained such from the earliest time after 1 July 2002 when it was a wholly‑owned subsidiary of the future head company until the group came into existence.

701‑5  Chosen transitional entity
 (1) If a group is a transitional group, its head company may choose that the group's transitional entity is a chosen transitional entity, or one or more of the group's transitional entities are chosen transitional entities.

Period for making choice
 (2) The choice must be made by the end of the period described in subsection 703‑50(3) for giving the Commissioner the choice under section 703‑50 that the group is taken to