(1) A company's share capital account is:
(a) an account that the company keeps of its share capital; or
(b) any other account (whether or not called a share capital account) that satisfies the following conditions:
(i) the account was created on or after 1 July 1998;
(ii) the first amount credited to the account was an amount of share capital.
(2) If a company has more than one account covered by subsection (1), the accounts are taken, for the purposes of this Act, to be a single account.
Note: Because the accounts are taken to be a single account (the combined share capital account ), tainting of any of the accounts has the effect of tainting the combined share capital account.
(3) However, if a company's * share capital account is * tainted, that account is taken not to be a share capital account for the purposes this Act, other than:
(a) subsection 118-20(6); and
(b) Division 197; and
(ba) paragraph 202-45(e); and
(c) the definition of paid-up share capital in subsection 6(1) of the Income Tax Assessment Act 1936 ; and
(d) subsection 44(1B) of the Income Tax Assessment Act 1936 ; and
(f) subsection 159GZZZQ(5) of the Income Tax Assessment Act 1936 .
Table of sections
975-500 Wholly-owned groups
975-505 What is a 100% subsidiary?