Income Tax (Transitional Provisions) Act 1997

This section applies if the group mentioned in subsection 701D‑10(2) of this Act is a MEC group.

For the purposes of that subsection, in determining whether an entity was at a particular time (the ownership time) a wholly‑owned subsidiary of the entity that became the head company of the group (the head entity), make the assumption in subsection (3).

The assumption is that the head entity owned at the ownership time each membership interest covered by subsection (4).

A membership interest is covered by this subsection if it was beneficially owned at the ownership time by any entity that became an eligible tier‑1 company of the group at the formation time.