Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p35
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 35/66)
Character Range: 6413006–6415671

company of the old group because of:
 (a) section 701‑1 (the single entity rule); or
 (b) section 701‑5 (the entry history rule); or
 (c) section 703‑75 (about the effects of choice to continue *consolidated group after shelf company becomes new head company); or
 (d) section 719‑90 (about the effects of a change of head company of a *MEC group); or
 (e) one or more previous applications of this Division.
 (3) Subsections (1) and (2) have effect:
 (a) for the *head company core purposes in relation to an income year ending after the conversion time; and
 (b) for the entity core purposes in relation to an income year ending after the conversion time; and
 (c) for the purposes of determining the balance of the *franking account of the head company of the new group at and after the conversion time.
 (4) Subsections (1) and (2) have effect subject to:
 (a) section 701‑40 (Exit history rule); and
 (b) a provision of this Act to which section 701‑40 is subject because of section 701‑85 (about exceptions to the core rules in Division 701).
Note: An example of provisions covered by paragraph (b) of this subsection is Subdivision 717‑E (about transferring to a company leaving a consolidated group various surpluses under the CFC rules in Part X of the Income Tax Assessment Act 1936).

719‑130  Provisions of this Part not to apply to conversion
 (1) A provision mentioned in subsection (5) that applies on an entity becoming a *member of a *consolidated group or *MEC group does not apply to an entity becoming such a member because of a situation described in subsection 719‑120(1), unless the provision is expressed to apply despite this subsection.
Note 1: An example of the effect of this subsection is that section 701‑5 (entry history rule) does not apply. See instead section 719‑125.
Note 2: Further examples of the effect of this subsection are that Division 705 (cost setting on entry) and Division 707 (losses) do not apply.
 (2) Subsection (1) does not affect the application of subsection 701‑1(1) (the single entity rule).
 (3) A provision mentioned in subsection (5) that applies on an entity ceasing to be a *member of a *consolidated group or *MEC group does not apply to an entity ceasing being such a member because of a situation described in subsection 719‑120(1), unless the provision is expressed to apply despite this subsection.
Note 1: An example of the effect of this subsection is that section 701‑40 (Exit history rule) does not apply. See instead section 719‑125.
Note 2: Another example of the effect of this subsection is that Division 711 (cost setting on exit) does not apply.
 (4) Subsection (3) does not apply if:
 (a)