Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If a group is a transitional group, its head company may, subject to subsection (3), choose that the group's transitional entity is a chosen transitional entity , or one or more of the group's transitional entities are chosen transitional entities .
(2) The choice must be made by the later of:
(a) the day on which the head company must give the notice under section 703 - 58 of the Income Tax Assessment Act 1997 (notice of choice to consolidate); and
(b) the end of 31 December 2005.
Agreement of other entities required in certain cases
(3) If the choice is to be made after the end of the period mentioned in paragraph (2)(a) and before the end of the day mentioned in paragraph (2)(b), it cannot be made unless each entity in relation to which the conditions in subsection (5) are satisfied has agreed to it being made.
Choice is irrevocable in certain circumstances
(4) The choice cannot be revoked unless:
(a) the revocation takes place before the end of 31 December 2005; and
(b) each entity in relation to which the conditions in subsection (5) are satisfied has agreed to the revocation.
(5) For the purposes of subsections (3) and (4), the conditions are that:
(a) the entity (the leaving entity ) ceased to be a subsidiary member of the group before the choice was made (in a subsection (3) case) or before the revocation took place (in a subsection (4) case); and
(b) an asset became that of the leaving entity because section 701 - 1 (the single entity rule) of the Income Tax Assessment Act 1997 ceased to apply when the leaving entity ceased to be a subsidiary member; and
(c) the asset had become that of the head company because that
section applied when a chosen transitional entity (whether or not the same
entity as the leaving entity) became a subsidiary member.