Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_6:p16
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 16/26)
Character Range: 214036–217688

interests only as a nominee of one or more entities each of which is mentioned in subparagraph (i) or (ii).

 (4) For the purposes of subparagraphs (3)(a)(iv) and (vii) and paragraphs (3)(b) and (c), in determining whether an entity is a wholly‑owned subsidiary of another *tier‑1 company of the *top company, assume that all of the *membership interests that are beneficially owned by tier‑1 companies of the top company were owned by a single tier‑1 company of the top company.

719‑20  What is a top company and a tier‑1 company?

 (1) At a particular time, a company is:
 (a) a top company if the requirements in item 1 of the table are met; or
 (b) a tier‑1 company of the top company if the requirements in item 2 of the table are met.

Top companies and tier‑1 companies
Column 1                            Column 2                                                                                                                                               Column 3                                                                          Column 4
Kind of entity                      Income tax treatment requirements                                                                                                                      Residence requirements                                                            Ownership requirements
 1 Top company                      No specific requirements                                                                                                                               The company must be a foreign resident                                            The company must not be a *wholly‑owned subsidiary of another company (other than a company that is a *prescribed dual resident, or a company that is an Australian resident that fails to meet a condition in column 2 of item 2)
 2 Tier‑1 company                   The company must have all or some of its taxable income (if any) taxed at a rate that is or equals the *general company tax rate apart from this Part  The company must be an Australian resident (but not a *prescribed dual resident)  The company:
                                    The company must not be covered by an item in the table in section 703‑20                                                                                                                                                                (a) must be a *wholly‑owned subsidiary of the *top company; and
                                                                                                                                                                                                                                                                             (b) must not be a wholly‑owned subsidiary of a company that is an Australian resident (other than a company that fails to meet a condition in column 2 or 3)

 (2) For the purposes of paragraph (b) of column 4 of item 2 of the table, in determining whether a company (the test company) is a *tier‑1 company, if 2 or more other companies beneficially own all of the *membership interests in the test company, and each of those other companies:
 (a) is a *wholly‑owned subsidiary of the *top company; and
 (b) meets the conditions in columns 2 and 3 of item 2 of the table;
the test company is taken to be a wholly‑owned subsidiary of one of those other companies.

719‑25  Head company and subsidiary members of a MEC group

 (1) The head company of a *MEC group is worked out under section 719‑75.

 (2) The remaining members of the group are the subsidiary members of the group.

719‑30  Treating entities as wholly‑owned