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

Transitional foreign-held subsidiaries and transitional foreign-held indirect subsidiaries

                   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

Application and obje c t



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