Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A provision mentioned in subsection (5) that applies on an entity becoming a * member of a * consolidated group or * MEC group does not apply to an entity becoming such a member because of a situation described in subsection 719 - 120(1), unless the provision is expressed to apply despite this subsection.
Note 1: An example of the effect of this subsection is that section 701 - 5 (entry history rule) does not apply. See instead section 719 - 125.
Note 2: Further examples of the effect of this subsection are that Division 705 (cost setting on entry) and Division 707 (losses) do not apply.
(2) Subsection (1) does not affect the application of subsection 701 - 1(1) (the single entity rule).
(3) A provision mentioned in subsection (5) that applies on an entity ceasing to be a * member of a * consolidated group or * MEC group does not apply to an entity ceasing being such a member because of a situation described in subsection 719 - 120(1), unless the provision is expressed to apply despite this subsection.
Note 1: An example of the effect of this subsection is that section 701 - 40 (Exit history rule) does not apply. See instead section 719 - 125.
Note 2: Another example of the effect of this subsection is that Division 711 (cost setting on exit) does not apply.
(4) Subsection (3) does not apply if:
(a) the old group mentioned in subsection 719 - 120(1) is a * consolidated group; and
(b) the new group mentioned in subsection 719 - 120(1) is a * MEC group; and
(c) the entity ceasing to be a * member of the old group becomes an * eligible tier - 1 company in respect of the new group.
(5) The provisions are as follows:
(a) Subdivision 104 - L;
(b) section 165 - 212E;
(c) this Part (other than this Subdivision);
(d) Part 3 - 90 of the Income Tax (Transitional Provisions) Act 1997 .