Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_6:p12
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 12/26)
Character Range: 203553–207045

tax return for the income year in which the time mentioned in paragraph (4)(b) occurred—the period:
 (i) beginning at that time; and
 (ii) ending on the day on which the company gives that return; or
 (e) if the company is not required to give the Commissioner an income tax return for the income year in which the time mentioned in paragraph (4)(b) occurred—the period:
 (i) beginning at that time; and
 (ii) ending at the end of the period within which the company would have been required to give an income tax return for that income year, if the company had been required to give an income tax return for that income year.

Continued existence of MEC group

 (7) If a MEC group (the first MEC group) consists of the members of a potential MEC group derived from one or more eligible tier‑1 companies of a top company, the first MEC group continues to exist until:
 (a) the potential MEC group ceases to exist; or
 (b) there is a change in the identity of the top company, and the eligible tier‑1 companies that were members of the first MEC group immediately before the change become members of another MEC group immediately after the change; or
 (c) there ceases to be a provisional head company of the first MEC group.
The first MEC group ceases to exist when one of those events happens.

Note: Subsection 719‑10(7) sets out the circumstances in which the potential MEC group ceases to exist.

719‑10  What is a potential MEC group?

 (1) A potential MEC group derived from one or more *eligible tier‑1 companies of a *top company consists of the following members:
 (a) those eligible tier‑1 companies;
 (b) all of the other entities (if any) which:
 (i) meet the requirements of the table; or
 (ii) are entities to which subsection (4) applies; or
 (iii) are entities to which subsection (5) applies.

Requirements for other entities
Column 1                                                                                                                                                                                                                      Column 2                                                                                        Column 3
Income tax treatment requirements                                                                                                                                                                                             Australian residence requirements                                                               Ownership requirements
The entity must be a company, trust or partnership and, if it is a company, all or some of its taxable income (if any) must have been taxable at a rate that is or equals the *general company tax rate apart from this Part  The entity must:                                                                                The entity must be:
The entity must not be covered by an item in the table in section 703‑20                                                                                                                                                      (a) be an Australian resident (but not a *prescribed dual resident), if it is a company; or     (a) a *wholly‑owned subsidiary of any of those *eligible tier‑1 companies; or
The entity must not be a non‑profit company (as defined in the Income Tax Rates Act 1986)                                                                                                                                     (b) meet the conditions