Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:13_3:p4
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 13 cl 3 (pt 4/5)
Character Range: 195781–198393

year, and the head company satisfies subsection (2) for that period.

 (2) The *head company satisfies this subsection for a period that is all or part of an income year if, throughout that period:
 (a) the head company is both a *foreign controlled Australian company and an *ADI (and would also be an ADI apart from Part 3‑90 (about consolidation of groups)); or
 (b) the head company:
 (i) is a *foreign controlled Australian company; and
 (ii) beneficially owns all the *membership interests in a *member of the group that is both a *foreign controlled Australian entity and an *ADI throughout that period; and
 (iii) would, apart from Part 3‑90 (about consolidation of groups), have no other assets and no *debt capital;
unless at least one member of the group would, apart from that Part and this Subdivision, be an *outward investing entity (non‑ADI) or *outward investing entity (ADI) for all or part of that period.

820‑587  Additional application of Subdivision 820‑D to MEC group that includes foreign‑controlled Australian ADI

  Subdivision 820‑D applies to the *head company of a *MEC group as if it were an *outward investing entity (ADI) for a period that is all or part of an income year if:
 (a) the head company is not an outward investing entity (ADI) for that period; and
 (b) throughout that period, at least one *member of the group is both a *foreign controlled Australian entity and an *ADI; and
 (c) throughout that period, there is at least one *eligible tier‑1 company of the *top company for the group that:
 (i) is a member of the group; and
 (ii) is not an ADI; and
 (iii) has no *wholly‑owned subsidiary that is an ADI.

820‑589  How Subdivision 820‑D applies to consolidated group or MEC group

 (1) This section has effect for the purposes of applying Subdivision 820‑D to the *head company of a *consolidated group or of a *MEC group, in relation to a period (the test period) that is all or part of an income year.

Note: Section 820‑587 extends the application of Subdivision 820‑D.

 (2) The *head company's adjusted average equity capital for the test period is the average value, for the period, of the amount worked out under subsection (3).

Note: To calculate an average value for the purposes of this Division, see Subdivision 820‑G.

 (3) The amount worked out under this subsection as at a particular day is the total of the amounts worked out under the table below for each entity that is a *member of the group on that day. The amounts are to be worked out, so far as practicable, on the basis of the information that would be contained in a set of consolidated