Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Assume that the test company fails to meet the conditions in section 165 - 12 at the time an event described in subsection (2), (3) or (4) happens after the start of the * ownership test period for the focal company in relation to:
(a) the * MEC group whose * head company was the focal company; or
(b) the * potential MEC group whose membership was the same as the membership of that MEC group.
Note: If the test company is assumed to fail to meet the conditions in section 165 - 12 for the claim year and the loss, the focal company is taken (under section 719 - 260) to have failed to meet those conditions.
(2) One event is the * potential MEC group ceasing to exist.
(3) Another event is something happening that meets these conditions:
(a) the thing happens at a time in relation to * membership interests in one or more of these entities:
(i) a company that was just before that time a * member of the * MEC group and an * eligible tier - 1 company of the * top company for the MEC group;
(ii) an entity interposed between a company described in subparagraph (i) and the company that was the top company for the group just before that time;
(b) the thing does not cause the * potential MEC group to cease to exist but does cause a change in the identity of the top company for the potential MEC group.
(4) Another event is the * MEC group ceasing to exist because there ceases to be a * provisional head company of the group.
Other causes of failure to meet conditions in section 165 - 12
(5) To avoid doubt, this section does not limit the
circumstances in which the test company would have failed to meet the
conditions in section 165 - 12 on the relevant assumptions set out in
sections 719 - 270 and 719 - 275.