Income Tax Act 2007 section 187

The qualifying subsidiaries requirement

Section 187 requires that any subsidiary held by the company issuing shares must be a qualifying subsidiary throughout the relevant period known as period B.

• Any subsidiary of the issuing company must meet the qualifying subsidiary criteria during period B.
• This requirement applies at any point in time during period B, not just at a single date.
• The rule covers all subsidiaries the issuing company has, without exception.
• If any subsidiary fails to qualify at any time during period B, the requirement is not met.