Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:16_5:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 16 cl 5 (pt 1/6)
Character Range: 260131–263032

5  After Division 701B
Insert:

Division 701C—Modified application etc. of provisions of Income Tax Assessment Act 1997: transitional foreign‑held membership structures

Table of Subdivisions

701C‑A Overview
701C‑B Membership rules allowing foreign holding
701C‑C Modifications of tax cost setting rules

Subdivision 701C‑A—Overview

Table of sections

701C‑1 Overview

701C‑1  Overview

  This Division:
 (a) sets out, for the purposes of item 2, column 4 of the table in subsection 703‑15(2) of the Income Tax Assessment Act 1997, rules that allow certain entities to be subsidiary members of consolidatable groups or consolidated groups where other entities are interposed between them and the head company of the group (see Subdivision 701C‑B); and
 (b) modifies certain rules in Part 3‑90 of the Income Tax Assessment Act 1997 relating to setting the tax cost of assets to take account of those membership rules (see Subdivision 701C‑C).

[The next section is 701C‑10.]

Subdivision 701C‑B—Membership rules allowing foreign holding

Table of sections

701C‑10 Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a non‑resident and the subsidiary member is a company
701C‑15 Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a non‑resident and the subsidiary member is a trust or partnership
701C‑20 Transitional foreign‑held subsidiaries and transitional foreign‑held indirect subsidiaries

701C‑10  Additional membership rules where entities are interposed between the head company and a subsidiary member—case where an interposed entity is a non‑resident and the subsidiary member is a company

 (1) This section describes, for the purposes of item 2, column 4 of the table in subsection 703‑15(2) of the Income Tax Assessment Act 1997, a set of requirements that must be met for an entity (the test entity) to be a subsidiary member of a consolidated group or a consolidatable group at a particular time (the test time).

Test entity must be company

 (2) At the test time, the test entity must be a company.

At least one interposed entity must be a non‑resident company or non‑resident trust

 (3) At the test time, at least one of the interposed entities must be:
 (a) a company (a non‑resident company) that is a foreign resident; or
 (b) a trust (a non‑resident trust) that does not meet the requirements in any item of the table in section 703‑25 of the Income Tax Assessment Act 1997.

The interposed entities must all be of a particular kind

 (4) At the test time, each of the interposed entities must be:
 (a) a subsidiary member of the group; or
 (b) a non‑resident company; or
 (c) a non‑resident trust; or
 (d) an entity that holds membership interests in an entity interposed between it