Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 167.20

Second way--also disregard secondary share classes

  (1)   This section applies in relation to each unequally structured company if:

  (a)   despite section   167 - 15, the unsatisfied condition cannot be worked out; and

  (b)   on the last day of the test period or at the test time (as appropriate), there is * on issue in that company one or more classes of * shares (the secondary share classes ) other than:

  (i)   the class or classes of ordinary or common shares that represent the majority of that company's value; and

  (ii)   * debt interests; and

  (c)   it is reasonable to conclude that the total * market value of the secondary share classes does not exceed 25% of the total market value of all of that company's shares (other than debt interests); and

  (d)   for one or more of the secondary share classes, it is reasonable to conclude that the market value of each of them does not exceed 10% of the total market value of all of that company's shares (other than debt interests).

Note:   This section can apply separately for each unequally structured company.

  (2)   For the purposes of subsection   (1), use * market values on the last day of the test period, or at the test time, (as appropriate).

  (3)   The unsatisfied condition may be reconsidered by disregarding:

  (a)   those of the secondary share classes that, under paragraph   (1)(d), caused this section to apply; and

  (b)   any * debt interests in that company.

  (4)   The way an entity prepares its * income tax return is sufficient evidence of it choosing to work out the unsatisfied condition under subsection   (3).


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