INCOME TAX ASSESSMENT ACT 1997 - SECT 220.510 Parent company's status as prescribed person sets status of all other members of same wholly - owned group

INCOME TAX ASSESSMENT ACT 1997 - SECT 220.510

  (1)   This section has effect for the purposes of working out whether a company is an * exempting entity at a particular time because it is effectively owned by prescribed persons within the meaning of section   208 - 25, if:

  (a)   at the time the company is a * 100% subsidiary of another company (the parent company ) that is not a 100% subsidiary of another member of the same * wholly - owned group; and

  (b)   at the time the parent company is a * post - choice NZ franking company; and

  (c)   there is at least one company (the non - Tasman company ) that meets all these conditions:

  (i)   the non - Tasman company is neither an Australian resident nor an * NZ resident at the time;

  (ii)   the non - Tasman company is a member of the same wholly - owned group at the time;

  (iii)   the non - Tasman company is interposed between the parent company and a company that, at the time, is an Australian resident or a post - choice NZ franking company.

  (2)   At the time, each company that is a * 100% subsidiary of the parent company is a prescribed person if the parent company is a prescribed person at the time for those purposes because of section   208 - 40 or 208 - 45 (taking account of section   220 - 505, if relevant).

  (3)   At the time, each company that is a * 100% subsidiary of the parent company is not a prescribed person if the parent company is not a prescribed person for those purposes because of section   208 - 40 or 208 - 45 (taking account of section   220 - 505, if relevant).

  (4)   This section has effect despite sections   208 - 40, 208 - 45 and 220 - 505 so far as those sections apply in relation to a * 100% subsidiary of the parent company.