Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 316.55

Disregarding capital gains and losses, except some involving receipt of money

  (1)   Disregard an entity's * capital gain or * capital loss from a * CGT event that happens under the demutualisation to a * CGT asset if:

  (a)   the entity:

  (i)   is or has been a * member of the * friendly society; or

  (ii)   is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; and

  (b)   the CGT asset is one of these (an interest affected by demutualisation ):

  (i)   an interest in the friendly society as the owner or holder of a policy of insurance with the friendly society or health/life insurance subsidiary;

  (ii)   a * membership interest in the friendly society;

  (iii)   a right or interest of another kind in the friendly society;

  (iv)   a right or interest of another kind that arises under the demutualisation, except an interest in a lost policy holders trust (see section   316 - 155).

Note:   Subdivision   316 - D deals with the effects of CGT events happening to interests in lost policy holders trusts.

  (2)   Disregard a * capital gain or * capital loss of an entity (the successor ) from a * CGT event that happens under the demutualisation to a * CGT asset if:

  (a)   the successor is the * legal personal representative, or beneficiary in the estate, of a deceased individual who was:

  (i)   a * member of the * friendly society; or

  (ii)   insured through the friendly society or a health/life insurance subsidiary of the friendly society; and

  (b)   the CGT asset:

  (i)   forms part of the deceased individual's estate; and

  (ii)   devolves or * passes to the successor; and

  (iii)   is an interest affected by demutualisation (see paragraph   (1)(b)).


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback