Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 8/20)
Character Range: 6239244–6241851

such an interest
 (1) For the purposes of Subdivision 165‑CD, treat the *head company of a *consolidated group as not having a relevant equity interest in a *loss company at a particular time if:
 (a) the head company is an *eligible tier‑1 company of a *top company at that time; and
 (b) the top company is a *widely held company at that time; and
 (c) because of subsections 165‑115X(2A), (2B) and (2C), the top company does not have a relevant equity interest under section 165‑115X in the loss company at that time.
 (2) For the purposes of paragraph (1)(c), disregard the operation of subsection 701‑1(1) (the single entity rule) in determining whether subsection 165‑115X(2C) has the effect that the *top company has the relevant equity interest mentioned in that paragraph.
 (3) For the purposes of Subdivision 165‑CD, treat the *head company of a *consolidated group as not having a relevant debt interest in a *loss company at a particular time if:
 (a) the head company is an *eligible tier‑1 company of a *top company at that time; and
 (b) the top company is a *widely held company at that time; and
 (c) because of subsections 165‑115Y(3A), (3B) and (3C), the top company does not have a relevant debt interest under section 165‑115Y in the loss company at that time.

How Subdivision 165‑CD applies to leaving entity that is a trust

715‑270  Subdivision 165‑CD applies
 (1) At and after the time (the leaving time) when a trust ceases to be a *subsidiary member of a *consolidated group, Subdivision 165‑CD (about reductions after alterations in ownership or control of loss company) applies to the trust on the basis set out in this section.
 (2) The trust is taken to be a company.
 (3) The leaving time is the only alteration time in respect of the trust.
 (4) The trust is a loss company at that time if, and only if, it has an *adjusted unrealised loss at that time. If so, that adjusted unrealised loss is its overall loss at that time.
 (5) If the trust is a *loss company at the leaving time and the *head company has a relevant equity interest under section 165‑115X in the leaving entity at the leaving time, the head company must choose whether subsection (6) or (7) of this section has effect for the purposes of applying, to each *membership interest in the trust, in relation to the time just before the leaving time, whichever of these provisions is appropriate:
 (a) subsection 701‑55(3) (about trading stock);
 (b) subsection 701‑55(5), but only so far as it relates to working out the *reduced cost base of a *membership interest that was *acquired on or after 20 September