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Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 167 - Companies whose shares carry unequal rights to dividends, capital distributions or voting power  

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Subdivision 167-A - Rights to dividends or capital distributions  

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Operative provisions

SECTION 167-10   When this Subdivision applies  

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When this Subdivision applies

167-10(1)    
This Subdivision applies in relation to a company if:


(a) as described in the following table, a condition (the unsatisfied condition ) cannot be worked out for the company for a particular period (the test period ); and


(b) at one or more times during the test period:


(i) the company; or

(ii) a company that has a *shareholding interest in it;
(an unequally structured company ) has an *unequal share structure.


Conditions that can be reconsidered under this Subdivision
Item Column 1
Each of the following provisions contains a condition: 		Column 2
that cannot be worked out for:
1 (a) subsection 165-12(3) or (4) ; a period that is all or part of the period to which that provision relates
  (b) paragraph 165-37(1)(b) or (c);
  (c) subsection 165-123(3) or (4) ;
  (d) paragraph 175-10(3)(b) or (c), 175-45(3)(b) or (c) or 175-85(3)(b) or (c);
  (e) subparagraph (b)(ii) or (iii) of the definition of eligible Division 166 company in subsection 995-1(1)

Note:

Each of these conditions is about rights to the company ' s dividends or capital distributions.

167-10(2)    
This Subdivision also applies in relation to a company if:


(a) as described in the following table, a condition (the unsatisfied condition ) cannot be worked out for the company for a particular time (the test time ); and


(b) at the test time, the company, or a company that has a *shareholding interest in it, (an unequally structured company ) has an *unequal share structure.


Conditions that can be reconsidered under this Subdivision
Item Column 1
Each of the following provisions contains a condition: 		Column 2
that cannot be worked out for:
1 (a) paragraph 165-115C(1)(b) or (c) or 165-115L(1)(b) or (c); a time that is the time, or one of the times, to which that provision relates
  (b) subparagraph 165-115X(1)(b)(ii) or (iii);
  (c) paragraph 165-115Z(1)(b) or (c);
  (d) subsection 166-145(3) or (4) ;
  (e) subparagraph 166-175(1)(e)(ii) or (iii);
  (f) paragraph 166-225(1)(b) or (c);
  (g) subparagraph 166-230(1)(a)(ii) or (iii);
  (h) paragraph 166-240(1)(b) or (c);
  (i) subparagraph 166-255(1)(e)(ii) or (iii) or 166-260(1)(e)(ii) or (iii);
  (j) paragraph 166-260(3)(b) or (c) or 166-270(2)(c) ;
  (k) paragraph 170-260(3)(b) or (c) or 170-265(2)(b) or (c)

Note 1:

Each of these conditions is about rights to the company ' s dividends or capital distributions.

Note 2:

If a condition cannot be worked out for several of the times to which the provision relates, apply this Subdivision separately for each of those times.

Meaning of unequal share structure

167-10(3)    
A company has an unequal share structure at a particular time if, at that time:


(a) the company ' s *shares do not all carry the same rights to *dividends, or capital distributions, of the company; or


(b) some or all of the company ' s shares carry discretionary rights to dividends, or capital distributions, of the company; or


(c) the company is a *co-operative company that has *on issue one or more interests (other than shares) in the company ' s capital.

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