Taxation Laws Amendment Act (No. 3) 1994 (138 of 1994)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 7   Amendments relating to short-term asset sales

Sub-Division C   Consequential amendments

73   Disposal of shares or interest in trust

Section 160ZZT of the Principal Act is amended by omitting subsection (2) and substituting the following subsection:

"(2) For the purposes of this section:

(a) a reference to property generally or to a particular kind of property includes a reference to an estate or interest in property, or in that kind of property; and

(b) a reference to the net worth of a company or trust estate is a reference to the total value of the assets of the company or trust estate as reduced by the total liabilities of the company or trust estate; and

(c) if a share is acquired by way of subscription of capital (with or without the payment of any other consideration), it is taken to have been purchased; and

(d) if a company issues shares in itself to a person as, or as part of, the consideration for the sale of property by the person to the company, the person is taken to have purchased those shares; and

(e) if one or more persons (the 'transferors') transfer property, with or without consideration, to one or more other persons (the 'transferees') the transfer is taken to constitute:

(i) the sale of the property by the transferors; and

(ii) the purchase of the property by the transferees; and

(f) if, under a contract, land is sold or purchased, it is taken to be sold or purchased on the day the contract is made.".