Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 719.40

  (1)   A special conversion event happens at a particular time to a * potential MEC group derived from an * eligible tier - 1 company of a * top company if:

  (a)   at that time, the group is not a * MEC group as a result of a choice under section   719 - 50; and

  (b)   immediately before that time, a company is:

  (i)   that eligible tier - 1 company; and

  (ii)   the * head company of a * consolidated group; and

  (c)   at that time, one or more other companies become eligible tier - 1 companies of the top company; and

  (d)   immediately after that time, no * membership interests in the company mentioned in paragraph   (b) are beneficially owned by another member of the potential MEC group derived from:

  (i)   the company mentioned in paragraph   (b); and

  (ii)   the companies mentioned in paragraph   (c); and

  (e)   the company mentioned in paragraph   (b) makes a choice in writing no later than the day mentioned in subsection   (2):

  (i)   specifying one or more of the companies mentioned in paragraph   (c); and

  (ii)   stating that a MEC group is to come into existence at that time as a result of the specified companies becoming eligible tier - 1 companies of the top company; and

  (f)   if:

  (i)   a company specified in the choice was a member of another MEC group immediately before that time; and

  (ii)   all of the eligible tier - 1 companies in that other MEC group became eligible tier - 1 companies of the top company at that time;

    each eligible tier - 1 company in that other MEC group is specified in the choice.

Note:   The company mentioned in paragraph   (b) must give the Commissioner a notice in the approved form containing information about the special conversion event (see sections   719 - 78 and 719 - 80).

  (2)   The day mentioned in paragraph   (1)(e) is:

  (a)   if the company is required to give the Commissioner its * income tax return for the income year during which that time occurs--the day on which the company gives the Commissioner that income tax return; or

  (b)   otherwise--the last day in the period within which the company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.