Income Tax Act 2007 section 140

The qualifying subsidiaries requirement

Section 140 sets out the requirement that any subsidiary of the issuing company must be a qualifying subsidiary.

• Every subsidiary the company has must meet the definition of a "qualifying subsidiary"
• The definition of "qualifying subsidiary" is found in section 191 of the Act
• This requirement must be met continuously throughout the relevant period, not just at a single point in time
• If any subsidiary fails to qualify at any point during the continuous period, the requirement is not met