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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 701.1

Transitional group and transitional entity

Group formed on 1 July 2002

             (1)  If a consolidated group came into existence on 1 July 2002:

                     (a)  the group is a transitional group ; and

                     (b)  each entity that became a subsidiary member of the group on the day it came into existence is a transitional entity .

Group formed after 1 July 2002 but before 1 July 2003

             (2)  If a consolidated group came into existence after 1 July 2002 but before 1 July 2003:

                     (a)  the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity ; and

                     (b)  an entity is a transitional entity if:

                              (i)  at no time after 1 July 2002 and before the group came into existence was the entity a wholly-owned subsidiary of the entity (the future head company ) that became the head company of the group; or

                             (ii)  at some time during that period, the entity was a wholly-owned subsidiary of the future head company and it remained such from the earliest time after 1 July 2002 when it was a wholly-owned subsidiary of the future head company until the group came into existence.

Group formed during financial year starting on 1 July 2003

             (3)  If a consolidated group came into existence during the financial year starting on 1 July 2003:

                     (a)  the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity; and

                     (b)  an entity is a transitional entity if:

                              (i)  just before 1 July 2003, it was a wholly-owned subsidiary of the future head company; and

                             (ii)  it remained such from the earliest time after 1 July 2002 when it was a wholly-owned subsidiary of the future head company until the group came into existence.



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