Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 197.35

  (1)   Subject to subsection   (2), this Division does not apply to the transferred amount if:

  (a)   the amount is transferred in connection with the demutualisation of a company; and

  (b)   the demutualisation is implemented in accordance with a demutualisation method specified in Division   9AA of Part   III of the Income Tax Assessment Act 1936 ; and

  (c)   the transfer occurs within the listing period in relation to the demutualisation (see subsection   121AE(6) of that Act); and

  (d)   the company (the issuing company ) to whose * share capital account the amount is transferred is:

  (i)   if the demutualisation method is the method specified in section   121AF or 121AG of the Income Tax Assessment Act 1936 --the demutualising company; or

  (ii)   if the demutualisation method is the method specified in section   121AH, 121AI, 121AJ, 121AK or 121AL of the Income Tax Assessment Act 1936 --the company issuing the ordinary shares referred to in that section.

  (2)   If the sum of:

  (a)   the transferred amount; and

  (b)   all amounts that were previously transferred to the issuing company's * share capital account, from another account of the company, in connection with the demutualisation; and

  (c)   all amounts that were previously transferred to the issuing company's retained profit account in connection with the demutualisation;

exceeds the listing day company valuation amount (see subsection   (3)), subsection   (1) does not stop this Division from applying to so much of the transferred amount as equals the lesser of the transferred amount and the amount of the excess.

Note:   If there are several transfers of amounts to the issuing company's share capital account, this section must be applied separately in relation to each transferred amount, in the order in which the transfers are made.

  (3)   The listing day company valuation amount has the same meaning as it has for the purposes of table 1 in section   121AS of the Income Tax Assessment Act 1936 , as that table applies in relation to the demutualising company (see note 3 to that table).