Commonwealth Consolidated Acts

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Third way--treat remaining shares as having fixed rights to dividends and capital distributions

When this section applies

             (1)  This section applies if, despite sections 167-15 and 167-20, the unsatisfied condition cannot be worked out for the test period or test time (as appropriate).

How to fix rights to dividends and capital distributions

             (2)  The unsatisfied condition may be reconsidered by applying subsections (3) and (4) to each unequally structured company. When doing this for an unsatisfied condition listed in subsection 167-10(1), assume:

                     (a)  that the test period consists only of the valuing times worked out under section 167-40; and

                     (b)  that each of those valuing times is a test time.

             (3)  Firstly, disregard any * debt interests in that company and any of its * shares that can be disregarded under subsection 167-20(3).

             (4)  Secondly, treat each of that company's remaining * shares * on issue at the test time as having at that time the percentage of the rights to receive * dividends, and capital distributions, worked out either:

                     (a)  under section 167-30; or

                     (b)  under section 167- 35 if:

                              (i)  it is not reasonably practicable to work out the market values of each of those remaining shares; or

                             (ii)  the sum of the * market values of all of those remaining shares is nil.

Note:          The remaining shares are those remaining after disregarding the shares mentioned in subsection (3).

Evidence of a choice under this section

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

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