(1) This section applies if the transitional group mentioned in section 701-35 of this Act is a MEC group.
(2) That section has effect as if paragraph 701-35(3)(c) were repealed and the following paragraph were substituted:
(c) when the transitional group came into existence, the test entity was a subsidiary member of the group, other than as:
(i) a transitional foreign-held subsidiary of the group (see section 701C-20); or
(ii) an eligible tier-1 company of the group.