INCOME TAX ASSESSMENT ACT 1997 - SECT 719.720 Alteration times under section 165 - 115L or 165 - 115M

INCOME TAX ASSESSMENT ACT 1997 - SECT 719.720

  (1)   This section has effect for the purposes of determining whether a time (the test time ) is an * alteration time under section   165 - 115L (about alterations in ownership) or 165 - 115M (about alterations in control) in respect of the * head company of a * MEC group.

Modified meaning of reference time

  (2)   The reference time is:

  (a)   if no * alteration time has occurred in respect of the head company since the group came into existence and before the test time--when the group came into existence; or

  (b)   otherwise--the time just after the last such alteration time.

  (3)   In applying subsection   (2), disregard an * alteration time arising under subsection   719 - 725(4).

  (4)   Subsection   (2) of this section has effect despite subsections   165 - 115L(2) and 165 - 115M(2).

Assumptions to make

  (5)   Assume that, while the * MEC group exists:

  (a)   the * top company for the group holds and beneficially owns all the * membership interests in the * head company (instead of whoever actually does); and

  (b)   those membership interests remain the same; and

  (c)   the top company directly controls the voting power in the head company.