Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_4:p7
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 7/8)
Character Range: 44575–48201

despite one or more entities ceasing to be subsidiary members of the group or becoming subsidiaries of the group, as long as the events described in subsection (2) do not happen to the head company. Thus a consolidated group may come to consist of a head company alone at various times.

703‑10  What is a consolidatable group?

 (1) A consolidatable group consists of:
 (a) a single *head company; and
 (b) all the *subsidiary members of the group.

 (2) To avoid doubt, a consolidatable group cannot consist of a *head company alone.

703‑15  Members of a consolidated group or consolidatable group

 (1) An entity is a member of a *consolidated group or *consolidatable group while the entity is:
 (a) the *head company of the group; or
 (b) a *subsidiary member of the group.

 (2) At a particular time in an income year, an entity is:
 (a) a head company if all the requirements in item 1 of the table are met in relation to the entity; or
 (b) a subsidiary member of a *consolidated group or *consolidatable group if all the requirements in item 2 of the table are met in relation to the entity:

Head companies and subsidiary members of groups
Column 1                                         Column 2                                                                                                                                                                                  Column 3                                                                                     Column 4
Entity's role in relation to group               Income tax treatment requirements                                                                                                                                                         Australian residence requirements                                                            Ownership requirements
 1 Head company                                  The entity must be a company (but not one covered by section 703‑20) that has all or some of its taxable income (if any) taxed at a rate that is or equals the *general company tax rate  The entity must be an Australian resident (but not a *prescribed dual resident)              The entity must not be a *wholly‑owned subsidiary of another entity that meets the requirements in columns 2 and 3 of this item or, if it is, it must not be a subsidiary member of a *consolidatable group or *consolidated group
 2 Subsidiary member                             The requirements are that:                                                                                                                                                                The entity must:                                                                             The entity must be a *wholly‑owned subsidiary of the head company of the group and, if there are interposed between them any entities, the requirement in subsection 703‑45(1) must be met
                                                 (a) the entity must be a company, trust or partnership (but not one covered by section 703‑20); and                                                                                       (a) be an Australian resident (but not a *prescribed dual resident), if it is a company; or
                                                 (b) if the entity is a company—all or some of its taxable income (if any) must be taxable apart from this Part at a rate that is or equals the *general company tax rate; and             (b) comply with section 703‑25, if it is a trust; or
                                                 (c) the entity must not be a non‑profit company (as