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INCOME TAX ASSESSMENT ACT 1997 - SECT 122.25

Other requirements to be satisfied

             (1)  You must own all the * shares in the company just after the time of the trigger event.

Note:          You must own the shares in the same capacity as you owned or created the assets that the company now owns.

             (2)  This Subdivision does not apply to the * disposal or creation of any of the assets specified in this table:

 

Assets to which Subdivision does not apply

Item

In this situation:

This Subdivision does not apply to:

1

You * dispose of a * CGT asset to the company or create a CGT asset in the company

(a) a * collectable or a * personal use asset; or

(b) a decoration awarded for valour or brave conduct (except if you paid money or gave any other property for it); or

(c)  a * precluded asset; or

(d) an asset that becomes * trading stock of the company just after the * disposal or creation; or

(e)  an asset that becomes a * registered emissions unit * held by the company just after the * disposal or creation

2

You * dispose of all the assets of a * business to the company

(a) a * collectable or a * personal use asset; or

(b) a decoration awarded for valour or brave conduct (except if you paid money or gave any other property for it); or

(c)  an asset that becomes * trading stock of the company just after the disposal or creation (unless it was your trading stock when you disposed of it); or

(d) an asset that becomes a * registered emissions unit * held by the company just after the * disposal or creation (unless it was a registered emissions unit held by you when you disposed of it)

             (3)  A precluded asset is:

                     (a)  a * depreciating asset; or

                     (b)  * trading stock; or

                     (c)  an interest in the copyright in a * film referred to in section 118-30; or

                     (d)  a * registered emissions unit.

             (4)  If:

                     (a)  the * CGT asset or any of the assets of the * business is a right, option, * convertible interest or * exchangeable interest; and

                     (b)  the company * acquires another CGT asset by exercising the right or option or by converting the convertible interest or in exchange for the disposal or redemption of the exchangeable interest;

the other asset cannot become * trading stock of the company just after the company acquired it.

             (5)  The * ordinary income and * statutory income of the company must not be exempt from income tax because it is an * exempt entity for the income year of the trigger event.

             (6)  If you are an individual at the time of the trigger event, either:

                     (a)  you and the company must both be Australian residents at that time; or

                     (b)  both of the following requirements must be satisfied:

                              (i)  each asset must be * taxable Australian property at that time;

                             (ii)  the shares in the company mentioned in subsection 122-20(1) must be taxable Australian property just after that time.

             (7)  If you are a trustee of a trust at the time of the trigger event, either:

                     (a)  at that time, the trust must be a * resident trust for CGT purposes and the company must be an Australian resident; or

                     (b)  both of the following requirements must be satisfied:

                              (i)  each * CGT asset must be a CGT asset of the trust that is * taxable Australian property at that time; and

                             (ii)  the shares in the company mentioned in subsection 122-20(1) must be taxable Australian property just after that time.



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