INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3CD - How to treat interposed superannuation funds, approved deposit funds and special companies  

Special tracing rules for listed public companies  

SECTION 160ZNSV   WHEN FUND OR SPECIAL COMPANY IS TAKEN TO HAVE RIGHTS TO DIVIDENDS AND CAPITAL  

160ZNSV(1)   Modification of application of ownership test about dividend rights and capital rights.  

This section modifies how the ownership test in section 160ZNSI (about dividend rights) or 160ZNSJ (about capital rights) is applied to the listed public company if:

(a) a superannuation fund, approved deposit fund or special company is interposed, at the ownership test time, between persons (none of them companies) and the listed public company; and

(b) at the ownership test time, those persons have the right to receive for their own benefit, and indirectly through the fund or special company (or through entities including it):

(i) a percentage of any dividends that the listed public company may pay; or

(ii) a percentage of any distributions of capital of the listed public company; and

(c) the fund or special company is a complying superannuation fund, complying approved deposit fund or special company at all times during the year of income of the listed public company in which the ownership test time occurs.

160ZNSV(2)   If fund or special company has more than 50 members.  

If the fund or special company has more than 50 members, the test is applied as if, at the ownership test time, the fund or special company were a person (other than a company) who had the right to receive, for the person's own benefit, that percentage of those dividends or distributions of capital of the listed public company.

160ZNSV(3)   If fund or special company has 50 members or less.  

However, if the fund or special company has 50 members or less, the test is applied as if, at the ownership test time, each member were a person (other than a company) who had the right to receive, for the person's own benefit, an equal proportion of those dividends or distributions of capital.

160ZNSV(4)   Persons who actually control are taken not to have it.  

The test is applied as if, at the ownership test time, the persons (other than companies) who have the right to receive that percentage of those dividends or distributions of capital did not have that right (except as provided by subsection (3)).