215‑15 Single entity rule215‑15 Single entity rule

#### 215‑15 Single entity rule (1) If an \*entity is a \*subsidiary member of the \*consolidated group or \*MEC group for any period in which the choice is in effect, it and any other subsidiary member of the group are taken for the purposes covered by subsection (2) to be parts of the \*head company or \*provisional head company of the group, rather than separate entities, during that period. > Note: Despite the single entity rule, a subsidiary member of the group is jointly and severally liable for an MRRT liability of the head company: see section 721‑10 of the Income Tax Assessment Act 1997. (2) The purposes covered by this subsection are: (a) working out the mining project interests or \*pre‑mining project interests the \*head company or \*provisional head company, or the \*entity, has for any \*MRRT year in which any of the period occurs or any later MRRT year; (b) working out any MRRT that is payable in relation to such an interest for any such MRRT year; (c) working out any allowance components arising in relation to such an interest for any such MRRT year; (d) working out the company’s or the entity’s \*instalment income for an \*instalment quarter that is part of any such MRRT year. > Note: Examples: The following are some examples of consequences of the single entity rule: (a) mining project interests that the subsidiary member of a consolidated group would otherwise start to have at a time after becoming a member of the group are mining project interests the head company has; (b) a supply of a taxable resource by a subsidiary member to the head company of a consolidated group would be disregarded and no amount would be included in the member’s mining revenue in relation to the supply; (c) an amount paid by the head company for such a supply would be disregarded and no amount would be included in its mining expenditure for the supply; (d) MRRT liabilities that a subsidiary member has before becoming a member of the group (and any interest charges associated with such a liability) remain liabilities of the subsidiary member and not the head company.