Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section has effect for the purposes of working out whether a company is an * exempting entity at a particular time because it is effectively owned by prescribed persons within the meaning of section 208 - 25, if:
(a) at the time the company is a * 100% subsidiary of another company (the parent company ) that is not a 100% subsidiary of another member of the same * wholly - owned group; and
(b) at the time the parent company is a * post - choice NZ franking company; and
(c) there is at least one company (the non - Tasman company ) that meets all these conditions:
(i) the non - Tasman company is neither an Australian resident nor an * NZ resident at the time;
(ii) the non - Tasman company is a member of the same wholly - owned group at the time;
(iii) the non - Tasman company is interposed between the parent company and a company that, at the time, is an Australian resident or a post - choice NZ franking company.
(2) At the time, each company that is a * 100% subsidiary of the parent company is a prescribed person if the parent company is a prescribed person at the time for those purposes because of section 208 - 40 or 208 - 45 (taking account of section 220 - 505, if relevant).
(3) At the time, each company that is a * 100% subsidiary of the parent company is not a prescribed person if the parent company is not a prescribed person for those purposes because of section 208 - 40 or 208 - 45 (taking account of section 220 - 505, if relevant).
(4) This section has effect despite sections 208 - 40, 208 - 45 and 220 - 505 so far as those sections apply in relation to a * 100% subsidiary of the parent company.