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INCOME TAX ASSESSMENT ACT 1997 - SECT 315.310

General taxation consequences of issue of demutualisation assets etc.

             (1)  An amount of * ordinary income or * statutory income of an entity to which subsection (2) applies is not assessable and not * exempt income if:

                     (a)  the amount would otherwise be included in the ordinary income or statutory income of the entity only because a demutualisation asset was issued to the entity; or

                     (b)  the amount is a payment made to the entity, under a demutualisation to which this Division applies, in connection with:

                              (i)  the variation or abrogation of rights attaching to or consisting of a * CGT asset covered by section 315-20; or

                             (ii)  the conversion, cancellation, extinguishment or redemption of such a CGT asset.

             (2)  This subsection applies to an entity that:

                     (a)  is, or has been, a policy holder (within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015 ) of, or another person insured through, the demutualising health insurer; or

                     (b)  is issued with the demutualisation asset, or receives the payment, because of the death of a policy holder mentioned in paragraph (a).

Table of Subdivisions

             Guide to Division 316

316-A   Application

316-B    Capital gains and losses connected with the demutualisation

316-C    Cost base of shares and rights issued under the demutualisation

316-D   Lost policy holders trust

316-E    Special CGT rules for legal personal representatives and beneficiaries

316-F    Non-CGT consequences of the demutualisation

Guide to Division 316



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