Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 719.65

Qualifications for the provisional head company

  (1)   A company is qualified to be the * provisional head company of a * MEC group if:

  (a)   the company is an * eligible tier - 1 company of the * top company; and

  (b)   no * membership interests in the company are beneficially owned by another member of the group.

  (2)   Subsection   (1) has effect subject to subsection   (3).

Period during which new provisional head company must have been a member of the group

  (3)   If:

  (a)   a company (the new company ) is to be appointed as the * provisional head company of a * MEC group under subsection   719 - 60(3); and

  (b)   the appointment will come into force immediately after a * cessation event happens to the former provisional head company of the group; and

  (c)   a company (the original company ) (which may be the former provisional head company) was appointed as the provisional head company of the group under subsection   719 - 60(1) or (2);

the new company is not qualified to be the provisional head company of the group unless the new company has been a member of the group at all times during the period:

  (d)   beginning at whichever of the following times is applicable:

  (i)   if the cessation event happened in the income year of the original company in which the group came into existence--the time when the group came into existence;

  (ii)   in any other case--the start of the income year of the former provisional head company in which the cessation event happened; and

  (e)   ending when the cessation event happened.