Commonwealth Consolidated Acts

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What this Subdivision is about

A MEC group and a potential MEC group each consist of certain Australian-resident entities that are wholly-owned subsidiaries of a foreign top company.

A company that is a first-tier subsidiary of the top company is a tier-1 company.

A MEC group cannot be formed unless there are at least 2 tier-1 companies of the top company that are eligible to be members of the group.

A MEC group becomes consolidated at a time chosen by the eligible tier-1 companies.

One of the eligible tier-1 companies becomes the head company of the group.

The remaining members of the group are the subsidiary members.

Table of sections

Basic concepts

719-5        What is a MEC group ?

719-10      What is a potential MEC group?

719-15      What is an eligible tier-1 company ?

719-20      What is a top company and a tier-1 company ?

719-25      Head company, subsidiary members and members of a MEC group

719-30      Treating entities as wholly-owned subsidiaries by disregarding employee shares

719-35      Treating entities held through non-fixed trusts as wholly-owned subsidiaries

719-40      Special conversion event--potential MEC group

719-45      Application of sections 703-20 and 703- 25

Choice to consolidate a potential MEC group

719-50      Eligible tier-1 companies may choose to consolidate a potential MEC group

719-55      When choice starts to have effect

Provisional head company

719-60      Appointment of provisional head company

719-65      Qualifications for the provisional head company of a MEC group

719-70      Income year of new provisional head company to be the same as that of former provisional head company

Head company

719-75      Head company

Notice of events affecting group

719-76      Notice of choice to consolidate

719-77      Notice in relation to new eligible tier-1 members etc.

719-78      Notice of special conversion event

719-79      Notice of appointment of provisional head company after formation of group

719-80      Notice of events affecting MEC group

Effects of change of head company

719-85      Application

719-90      New head company treated as substituted for old head company at all times before the transition time

719-95      No consequences of old head company becoming, and new head company ceasing to be, subsidiary member of the group

Basic concepts

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