Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section has effect for the purposes of working out the consequences (if any) of an * indirect value shift if the * losing entity or * gaining entity is the * head company of a * MEC group. (Subsection (3) has effect in addition to section 727 - 455.)
(2) An * equity or loan interest can be an * affected interest in the * head company only if it is:
(a) an * equity or loan interest in the * top company for the MEC group; or
(b) an * indirect equity or loan interest in the top company.
(3) Subdivision 719 - K (MEC group cost setting rules: pooling cases) applies to the * MEC group, in relation to the first time referred to in that Subdivision as a trigger time that happens at or after the * IVS time, on the basis that:
(a) what would, apart from this section, be the pooled cost amount for the purposes of the formulas in subsections 719 - 570(1) and (2) is:
(i) if the * head company is the * losing entity--reduced; or
(ii) if the head company is the gaining entity--increased;
by the amount of the indirect value shift; and
(b) paragraph (a) of this subsection also affects the application of those formulas because of subsection 719 - 570(3) (to work out the * reduced cost base of a * membership interest).