INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3CA - Net capital gain or net capital loss of listed public company or its 100% subsidiary for year of income in which ownership or control of the company changed  

SECTION 160ZNSD   HOW DIVISION 3A APPLIES TO 100% SUBSIDIARY OF A LISTED PUBLIC COMPANY  

160ZNSD(1)   [Div 3A modified further]  

This Division also modifies the way Division 3A applies to a company that is not a listed public company, but only if the conditions in subsections (2) and (3) are met.

Note:

Division 3A is about when a company must calculate its net capital gain or net capital loss for the year of income in a special way.

160ZNSD(2)   [Subsidiary]  

The company (the subsidiary ) must be a 100% subsidiary of another company (the holding company ) at all times during the subsidiary's year of income.

160ZNSD(3)   [Listing]  

Also, the holding company must be a listed public company at all times during that year of income.

160ZNSD(4)   [Where conditions met]  

If the conditions are met, then, for the purposes of applying Division 3A to the subsidiary, this Division applies to the subsidiary as if:

(a) the subsidiary were itself a listed public company at all times during the year of income; and

(b) an abnormal trading in shares in the holding company during the year of income were an abnormal trading in shares in the subsidiary.

(Divisions 3CB, 3CC and 3CD apply to the subsidiary in the same way and for the same purpose).