Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:13_1:p9
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 13 cl 1 (pt 9/10)
Character Range: 245782–248338

the test company failing to meet the conditions in section 165‑12

 (1) Assume that the test company fails to meet the conditions in section 165‑12 at the time an event described in subsection (2), (3) or (4) happens after the start of the *ownership test period for the focal company in relation to:
 (a) the *MEC group whose *head company was the focal company; or
 (b) the *potential MEC group whose membership was the same as the membership of that MEC group.

Note: If the test company is assumed to fail to meet the conditions in section 165‑12 for the claim year and the loss, the focal company is taken (under section 719‑260) to have failed to meet those conditions.

 (2) One event is the *potential MEC group ceasing to exist.

 (3) Another event is something happening that meets these conditions:
 (a) the thing happens at a time in relation to *membership interests in one or more of these entities:
 (i) a company that was just before that time a *member of the *MEC group and an *eligible tier‑1 company of the *top company for the MEC group;
 (ii) an entity interposed between a company described in subparagraph (i) and the company that was the top company for the group just before that time;
 (b) the thing does not cause the *potential MEC group to cease to exist but does cause a change in the identity of the top company for the potential MEC group.

 (4) Another event is the *MEC group ceasing to exist because there ceases to be a *provisional head company of the group.

Other causes of failure to meet conditions in section 165‑12

 (5) To avoid doubt, this section does not limit the circumstances in which the test company would have failed to meet the conditions in section 165‑12 on the relevant assumptions set out in sections 719‑270 and 719‑275.

Same business test and change of head company

719‑285  Same business test and change of head company

  In working out whether the *same business test is satisfied by a company that, after the *test time, became the *head company of a *MEC group that existed before that time, disregard what happened in relation to the company before it became a *member of the group. Section 719‑90 has effect subject to this section.

Note 1: The same business test is to be applied on the basis that the company's business at the test time was the business that section 719‑90 treats the company as having carried on at that time, except to the extent that section 719‑90 attributes to the company its actual history before it became a member of the MEC group.

Note 2: Section 719‑90