Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:24_3:p4
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 24 cl 3 (pt 4/6)
Character Range: 337703–340406

the purposes of this Part, when a company becomes the new *provisional head company of a *MEC group:
 (a) the company inherits the history of the former provisional head company; and
 (b) the history of the new provisional head company is effectively ignored.

 (2) This section applies to a *provisional head company of a *MEC group (the new provisional head company) that is appointed under subsection 719‑60(3) of the Income Tax Assessment Act 1997 if one of the following conditions is satisfied:
 (a) the conditions in subsection 45‑915(4) are satisfied in relation to the new provisional head company (whether or not Subdivision 45‑Q applies to the company as the provisional head company of the group for any period of time);
 (b) the new provisional head company is so appointed during the *instalment quarter of the company in which the MEC group is *created from a *consolidated group and either:
 (i) the Commissioner gives the *initial head company instalment rate to the *head company of the consolidated group during that instalment quarter; or
 (ii) Subdivision 45‑Q applied to the head company of the consolidated group at the end of the previous instalment quarter.

 (3) Everything that happened before the starting time in relation to the company (the former company) that was the *provisional head company of the *MEC group immediately before the starting time:
 (a) is taken to have happened in relation to the new provisional head company instead of in relation to the former company; and
 (b) is taken to have happened in relation to the new provisional head company instead of what would (apart from this section) be taken to have happened in relation to the new provisional head company before the starting time;
just as if, at all times before the starting time:
 (c) the new provisional head company had been the former company; and
 (d) the former company had been the new provisional head company.

 (4) For the purposes of this section, the starting time is the time at which the *cessation event happened to the former company (the event that results in the appointment of the new provisional head company).

 (5) To avoid doubt, subsection (3) also covers everything that, immediately before the starting time, was taken to have happened in relation to the former company because of:
 (a) section 701‑1 of the Income Tax Assessment Act 1997 (single entity rule); or
 (b) section 701‑5 of that Act (entry history rule); or
 (c) section 703‑75 of that Act (effects of an interposed company becoming the *head company of a *consolidated group); or
 (d) section 719‑90 of that Act (effects of a change of head company of a *MEC group); or
 (e) section 45‑710 in this Schedule