Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:13_3:p2
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 13 cl 3 (pt 2/5)
Character Range: 191107–193671

(general) under subsection 820‑583(2).

 This section ensures that section 820‑120 (about part year periods) applies to Austco instead of section 820‑85, so that Subdivision 820‑B has 2 separate applications to Austco: one for the first 6 months and the other for the rest of the income year. Under the second application, account is taken of the position of the subsidiary members that are taken to be part of Austco as head company of the consolidated group.

 If some or all of the period of those first 6 months is before 1 July 2003, another consequence of this section is that Austco may become part of a resident TC group under Subdivision 820‑F for so much of that period as is before 1 July 2003. See sections 820‑455 to 820‑458.

820‑583  Classification of head company

Outward investing entity (non‑ADI)

 (1) The *head company of a *consolidated group or of a *MEC group is an outward investing entity (non‑ADI) for a period that is all or part of an income year if, and only if, it is:
 (a) an *outward investor (general) for that period (because of subsection (2)); or
 (b) an *outward investor (financial) for that period (because of subsection (3)).

Outward investor (general)

 (2) The *head company of a *consolidated group or of a *MEC group is an outward investor (general) for a period that is all or part of an income year if:
 (a) for that period, the head company satisfies the condition in the second column of item 1 or 3 of the table in subsection 820‑85(2); and
 (b) no *member of the group is a *financial entity or *ADI at any time during that period.

Outward investor (financial)

 (3) The *head company of a *consolidated group or of a *MEC group is an outward investor (financial) for a period that is all or part of an income year if:
 (a) for that period, the head company satisfies the condition in the second column of item 1 or 3 of the table in subsection 820‑85(2); and
 (b) throughout that period, there is at least one *member of the group that is a *financial entity; and
 (c) no *member of the group is an *ADI at any time during that period.

Inward investing entity (non‑ADI)

 (4) The *head company of a *consolidated group or of a *MEC group is an inward investing entity (non‑ADI) for a period that is all or part of an income year if, and only if, it is:
 (a) an *inward investment vehicle (general) for that period (because of subsection (5)); or
 (b) an *inward investment vehicle (financial) for that period (because of subsection (6)).

Inward investment vehicle (general)

 (5) The *head company of a