Does the consolidation entry history rule apply for the purposes of the SBT?
The consolidation entry history rule does not apply for the purposes of the SBT. Accordingly, the head company of a consolidated/MEC group is not deemed to carry on the business of a subsidiary member of the group before it joined the group. See Taxation Ruling TR 2007/2. Note that when a head company of a consolidated/MEC group applies the SBT, its business is that of the group as a whole. Again, see TR 2007/2.
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