Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p65
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 65/66)
Character Range: 6489289–6491910

satisfied, because of that MEC group, at a time when the first entity was a member of the group, unless the interest needed to be disregarded under section 719‑30 (about employee shares) in order for the first entity to be a member of the group at that time.

Liabilities owed by leaving entity
 (2) If the realised interest:
 (a) consists of a liability owed by the first entity to the owner; and
 (b) became an asset of the owner because subsection 701‑1(1) (the single entity rule) ceased to apply to the first entity when it ceased to be a *subsidiary member of a *MEC group;
the first condition in section 719‑775 cannot be satisfied, because of that MEC group, at a time when the first entity was a member of the group.

719‑795  Exception if loss attributable to certain matters
 (1) The loss is not reduced if all of it can be shown to be attributable to things other than these:
 (a) something that would be reflected in what would, apart from this Part, be an overall loss under section 165‑115R or 165‑115S, of a *member of a *MEC group (an excluded group) because of which the first condition in section 719‑775 is satisfied, at an *alteration time for that member;
 (b) an *indirect value shift for which, apart from this Part, a member of an excluded group would be the *losing entity or the *gaining entity.
 (2) If only part of the loss can be shown to be attributable to things other than the ones listed in subsection (1), the loss is reduced to the amount of that part.

Division 721—Liability for payment of tax where head company fails to pay on time

Guide to Division 721

721‑1  What this Division is about
      If the head company of a consolidated group fails to meet an income tax related liability by the time it becomes due and payable, entities that were subsidiary members of the group during the period to which the liability relates can also be responsible for all or part of the liability.

Table of sections

Object
721‑5 Object of this Division

When this Division operates
721‑10 When this Division operates

Joint and several liability of contributing member
721‑15 Head company and contributing members jointly and severally liable to pay group liability
721‑17 Notice of joint and several liability for general interest charge
721‑20 Limit on liability where group first comes into existence

Tax sharing agreements
721‑25 When a group liability is covered by a tax sharing agreement
721‑30 TSA contributing members liable for contribution amounts
721‑32 Notice of general interest charge liability under TSA
721‑35 When a TSA contributing member has left the group clear of the