Commonwealth Consolidated Acts

TAXATION LAWS AMENDMENT ACT (NO. 6) 2003 - SCHEDULE 5

Income Tax Assessment Act 1997

1   Subparagraphs 719 - 10(1)(b)(ii) and (iii)

Repeal the subparagraphs, substitute:

  (ii)   are entities for which the requirements in section   701C - 10 of the Income Tax (Transitional Provisions) Act 1997 are met; or

  (iii)   are entities for which the requirements in section   701C - 15 of the Income Tax (Transitional Provisions) Act 1997 are met.

2   Subsections 719 - 10(4) and (5)

Repeal the subsections.

3   Paragraph 719 - 10(6)(c)

Repeal the paragraph, substitute:

  (c)   there are no entities for which the requirements mentioned in subparagraph   (1)(b)(ii) are met; and

  (d)   there are no entities for which the requirements mentioned in subparagraph   (1)(b)(iii) are met;

Income Tax (Transitional Provisions) Act 1997

4   At the end of section   701C - 1

Add:

Note:   This Division has effect in relation to a MEC group in the same way in which it has effect in relation to a consolidated group (see sections   719 - 2 and 719 - 10 of this Act).

5   At the end of subsection 701C - 10(1)

Add:

Note:   This subsection applies in relation to a MEC group as if the reference to item   2, column 4 of the table in subsection 703 - 15(2) of the Income Tax Assessment Act 1997 were a reference to subparagraph 719 - 10(1)(b)(ii) of that Act (see subsection 719 - 2(3) of this Act).

6   At the end of subsection 701C - 15(1)

Add:

Note:   This subsection applies in relation to a MEC group as if the reference to item   2, column 4 of the table in subsection 703 - 15(2) of the Income Tax Assessment Act 1997 were a reference to subparagraph 719 - 10(1)(b)(iii) of that Act (see subsection 719 - 2(3) of this Act).

7   Section   701C - 30

Omit "transitional foreign - held entity", substitute "transitional foreign - held joining entity".

8   Section   701C - 30 (note 2)

Omit "transitional foreign - held entity", substitute "transitional foreign - held joining entity".

9   Section   701C - 35

Omit "transitional foreign - held entity", substitute "transitional foreign - held joining entity".

10   At the end of Subdivision   719 - B

Add:

719 - 10   Effect of Division   701C

  (1)   This section applies if the consolidated group mentioned in section   701C - 10 or 701C - 15 is a MEC group.

  (2)   To avoid doubt, for the purposes of those sections, the test entity cannot be a subsidiary member of the group if the group came into existence on or after 1   July 2004.