Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 2/19)
Character Range: 5838992–5841698

chooses under subsection 615‑30(2) that a *consolidated group is to continue in existence at and after the time referred to in that subsection as the completion time.
Note: The choice is one of the conditions for a compulsory roll‑over under Division 615 on an exchange of shares in the head company of a consolidated group for shares in the interposed company.

703‑70  Consolidated group continues in existence with interposed company as head company and original entity as a subsidiary member
 (1) The *consolidated group is taken not to have ceased to exist under subsection 703‑5(2) because the company referred to in subsection 615‑30(2) as the original entity ceases to be the *head company of the group.
 (2) To avoid doubt, the interposed company is taken to have become the *head company of the *consolidated group at the completion time, and the original entity is taken to have ceased to be the head company at that time.
Note: A further result is that the original entity is taken to have become a subsidiary member of the group at that time. Section 703‑80 deals with the original entity's tax position for the income year that includes the completion time.
 (3) A provision of this Part that applies on an entity becoming a *subsidiary member of a *consolidated group does not apply to an entity being taken to have become such a member as a result of this section, unless the provision is expressed to apply despite this subsection.
Note: An example of the effect of this subsection is that there is no resetting under section 701‑10 of the tax cost of assets of the original entity that become assets of the interposed company because of subsection 701‑1(1) (the single entity rule).
 (4) To avoid doubt, subsection (3) does not affect the application of subsection 701‑1(1) (the single entity rule).

703‑75  Interposed company treated as substituted for original entity at all times before the completion time
 (1) Everything that happened in relation to the original entity before the completion time:
 (a) is taken to have happened in relation to the interposed company instead of in relation to the original entity; and
 (b) is taken to have happened in relation to the interposed company instead of what would (apart from this section) be taken to have happened in relation to the interposed company before that time;
just as if, at all times before the completion time:
 (c) the interposed company had been the original entity; and
 (d) the original entity had been the interposed company.
Note: This section treats the original entity and the interposed company as having in effect exchanged identities throughout the period before the completion time, but without affecting any of