Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 118.550

Demutualisation of Tower Corporation

             (1)  This section applies if, just before the mutual entity known in New Zealand as Tower Corporation ceased to be a mutual entity, you had membership rights in that entity.

Note:          Tower Corporation demutualised on 1 October 1999.

No capital gain or capital loss from end of membership rights

             (2)  Disregard any * capital gain or * capital loss that resulted from any of your membership rights in Tower Corporation ceasing to exist when that entity ceased to be a mutual entity.

Note:          Subsection (2) applies to you even if, because you could not be located at the time of demutualisation, you were not immediately issued with shares in the demutualised entity in substitution for your old membership rights, and rights to shares were instead put aside in a trust.

Cost base of replacement assets

             (3)  The * cost base and the * reduced cost base of any * shares or other * CGT assets that you * acquire in substitution for the membership rights that have ceased to exist do not include any amounts that you paid in acquiring or maintaining those old rights.

Table of sections

118-560    Object

118-565    Look-through earnout rights

118-570    Extra ways a CGT asset can be an active asset

118-575    Creating and ending look-through earnout rights

118-580    Temporarily disregard capital losses affected by look-through earnout rights



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