Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 701C.20

    If:

  (a)   an entity is a subsidiary member of a consolidated group in a case where the set of requirements described in section   701C - 10 are met; and

  (b)   one or more of the membership interests in the entity are held by:

  (i)   a non - resident company; or

  (ii)   a non - resident trust; or

  (iii)   an entity that holds the membership interests only as a nominee of one or more entities each of which is a non - resident company or a non - resident trust; or

  (iv)   a partnership, each of the partners in which is a non - resident company or a non - resident trust;

then:

  (c)   the entity is a transitional foreign - held subsidiary of the group; and

  (d)   if:

  (i)   the transitional foreign - held subsidiary; or

  (ii)   an entity that is a transitional foreign - held indirect subsidiary of the group because of another application of this paragraph;

    holds one or more membership interests in another entity that:

  (iii)   is a subsidiary member of the group; and

  (iv)   is not a transitional foreign - held subsidiary of the group;

    that other member is a transitional foreign - held indirect subsidiary of the group.

Note:   In order to be a subsidiary member of the group as required by subparagraph   (d)(iii), the transitional foreign - held indirect subsidiary would need to have satisfied the set of requirements in either section   701C - 10 or 701C - 15

Table of sections

Application and object

701C - 25   Application and object of this Subdivision

Basic modification

701C - 30   Transitional foreign - held subsidiary to be treated as part of head company

Other modifications

701C - 35   Trading stock value not set for assets of transitional foreign - held subsidiaries

701C - 40   Cost setting rules for exit cases--modification of core rules

701C - 50   Cost setting rules for exit cases--reference to modification of core rule