Document ID: chunk:federal_register_of_legislation:C2005C00282:clause:4_73r:p1
Version: federal_register_of_legislation:C2005C00282
Segment Type: clause
Provision Reference: sch 4 cl 73R (pt 1/2)
Character Range: 108664–111263

73R  Group members

 (1) This section sets out rules for determining whether an eligible company that has deducted or can deduct an amount under subsection 73B(13) or (14) is a group member in relation to another company that has deducted or can deduct such an amount. In applying this section, use section 73L to determine whether companies are grouped.

 (2) Work out the group members of the eligible company and their group membership periods in this way:

      Method statement
           Step 1. Work out, as at the last day of the Y0 year of income, which companies are grouped with the eligible company. The eligible company and these grouped companies are the primary group members.
           Step 2. Work out the day before the last day of the Y0 year of income, or the first day of the Y‑3 year of income, whichever is the later, when a company that is a primary group member:

                (a) was controlled, as mentioned in section 73L, by a person other than a person who controlled it as at the last day of the Y0 year of income; or
                (b) acted, or could be expected to act, in accordance with the directions or wishes of a person other than a person in accordance with whose directions or wishes it acted, or could be expected to act, as at the last day of the Y0 year of income.

            The period between this day and the last day of the Y0 year of income is that company's group membership period.
           Step 3. Any other company that was grouped with a primary group member at a time during the member's group membership period is a secondary group member.
           Step 4. Work out the day before the last day of the Y0 year of income when a secondary group member became grouped with the primary group member as mentioned in step 3, or the first day of the Y‑3 year of income, whichever is the later.
           Step 5. Work out the day before the last day of the Y0 year of income when the secondary group member was not so grouped with the primary group member. The period between that day and the day worked out under step 4 is the secondary group member's group membership period.

Exception: secondary member leaving with a viable business

 (3) The period that would be a secondary group member's group membership period is treated as never having existed if, at the end of that period when the secondary group member stops being grouped with a primary group member, the secondary group member has a viable business.

Exception: extending group membership period

 (4) The group membership period of a group member of a particular group