INCOME TAX ASSESSMENT ACT 1997 - SECT 719.50 Eligible tier - 1 companies may choose to consolidate a potential MEC group

INCOME TAX ASSESSMENT ACT 1997 - SECT 719.50

Making a choice to consolidate

  (1)   If:

  (a)   a * potential MEC group (the first group ) derived from 2 or more * eligible tier - 1 companies of a * top company is in existence at the start of a particular day; and

  (b)   that day is after 30   June 2002; and

  (c)   none of those eligible tier - 1 companies is already a member of a * MEC group or a * consolidated group;

those eligible tier - 1 companies, jointly, may make a choice in writing that the first group be consolidated on and after that day. If they do so, the choice must specify that day.

Note:   The provisional head company must give the Commissioner a notice in the approved form containing information about the group (see sections   719 - 76 and 719 - 80).

Choice cannot be revoked or specified day amended

  (2)   A choice cannot be revoked and the specification of the day cannot be amended.

  (3)   A choice can be made no later than:

  (a)   if the company mentioned in subsection   (3A) is required to give the Commissioner its * income tax return for the income year during which that day occurs--the day on which that company gives the Commissioner that income tax return; or

  (b)   otherwise--the last day in the period within which that company would be required to give the Commissioner such a return if it were required to give the Commissioner such a return.

  (3A)   The company is:

  (a)   in a case where subsection   719 - 75(1) or (2) applies--the company that will be the * head company of the group as at the end of the income year; and

  (b)   in a case where subsection   719 - 75(3) applies--the company that will be the head company of the group immediately before the group ceased to exist.

Company ceases to be an eligible tier - 1 company before choice is given to the Commissioner

  (4)   If:

  (a)   as a result of a choice:

  (i)   subsection   719 - 75(1), (2) or (3) would apply to the * MEC group concerned in relation to the * income year of a company in which the specified day occurred; and

  (ii)   in a case where subsection   719 - 75(1) or (2) applies--the company will be the * head company of the group as at the end of the income year; and

  (iii)   in a case where subsection   719 - 75(3) applies--the company will be the * head company of the group immediately before the group ceased to exist; and

  (b)   another company (the other company ) that was an eligible tier - 1 company at the start of the specified day ceased to exist at a time before:

  (i)   the day on which the company mentioned in paragraph   (a) gives the Commissioner its * income tax return for the income year during which the day specified in the choice occurs; or

  (ii)   the last day in the period within which the company mentioned in paragraph   (a) would be required to give the Commissioner such a return if it were required to give the Commissioner such a return; and

  (c)   having regard to all relevant circumstances, it would be reasonable to conclude that the other company would have been a party to the choice if the other company had continued to exist;

the other company is taken to have authorised the company that will be the head company as mentioned in subparagraph   (a)(ii) or (iii):

  (d)   to make the choice on behalf of the other company; and

  (e)   to do, on behalf of the other company, anything else under:

  (i)   subsection   (1) of this section; or

  (ii)   subsection   719 - 60(1) or (3).