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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS    View history reference

Division 703 - Consolidated groups and their members    View history reference

Basic concepts  

SECTION 703-15  Members of a consolidated group or consolidatable group  

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703-15(1)  

An entity is a member of a *consolidated group or *consolidatable group while the entity is:


(a) the *head company of the group; or


(b) a *subsidiary member of the group.

703-15(2)  

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At a particular time in an income year, an entity is:


(a) a head company if all the requirements in item 1 of the table are met in relation to the entity; or


(b) a subsidiary member of a *consolidated group or *consolidatable group if all the requirements in item 2 of the table are met in relation to the entity:

Graphic

Head companies and subsidiary members of groups
Column 1
Entity's role in relation to group
Column 2
Income tax treatment requirements
Column 3
Australian residence requirements
Column 4
Ownership requirements
1 Head company The entity must be a company (but not one covered by section 703-20) that has all or some of its taxable income (if any) taxed at a rate that is or equals the *corporate tax rate The entity must be an Australian resident (but not a *prescribed dual resident) The entity must not be a *wholly-owned subsidiary of another entity that meets the requirements in columns 2 and 3 of this item or, if it is, it must not be a subsidiary member of a *consolidatable group or *consolidated group
2 Subsidiary member The requirements are that:

(a) the entity must be a company, trust or partnership (but not one covered by section 703-20); and

(b) if the entity is a company - all or some of its taxable income (if any) must be taxable apart from this Part at a rate that is or equals the *corporate tax rate; and

(c) the entity must not be a non-profit company (as defined in the Income Tax Rates Act 1986)
The entity must:

(a) be an Australian resident (but not a *prescribed dual resident), if it is a company; or

(b) comply with section 703-25, if it is a trust; or

(c) be a partnership
The entity must be a *wholly-owned subsidiary of the head company of the group and, if there are interposed between them any entities, the set of requirements in section 703-45, section 701C-10 of the Income Tax (Transitional Provisions) Act 1997 or section 701C-15 of that Act must be met


 



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