Commonwealth Consolidated Acts Commonwealth Consolidated ActsSection 701 - 15 of the Income Tax Assessment Act 1997 applies as if the following subsection were added at the end of the section:
Application to transitional foreign - held subsidiaries
(4) If an entity that ceases to be a subsidiary member is a transitional foreign - held subsidiary when it does so:
(a) this section applies to each membership interest in the transitional foreign - held subsidiary that is held by an entity (an eligible non - resident ) of a kind mentioned in subparagraph 701C - 20(b)(i), (ii), (iii) or (iv) of the Income Tax (Transitional Provisions) Act 1997 in the same way as it applies to a membership interest in the transitional foreign - held subsidiary that is held by the head company; and
(b) for that purpose, the definition of head company core purposes in subsection 701 - 1(2) of the Income Tax Assessment Act 1997 applies to the eligible non - resident in the same way as it applies to the head company.