Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 16J - Effect of cancellation of subsidiary's shares in holding company  

SECTION 159GZZZC   INTERPRETATION - GENERAL  

159GZZZC(1)   [ Definitions ]  

In this Division:

associate
has the same meaning as in section 318 .

"cancellation"
includes redemption;

"disposal"
includes cancellation;

"entity"
means a company, a partnership or a trust estate;

"pre-cancellation period"
, in relation to a cancellation of shares to which this Division applies, means the period beginning when the holding company concerned became a holding company of the subsidiary concerned and ending at the time of the cancellation;

"security"
means stock, a bond or debenture, or any other document evidencing the indebtedness of a person, whether or not the debt is secured.

159GZZZC(3)   [ " subsidiary " ; " holding company " ]  

For the purposes of this Division, a company is:

(a) a subsidiary of another company; or

(b) the holding company of another company;

if the first-mentioned company is such for the purposes of the Corporations Act 2001 .

159GZZZC(4)   [ Interest in an entity ]  

For the purposes of this Division, a reference to an interest in an entity is a reference to a legal or equitable interest in:

(a) if the entity is a company - shares in the company;

(b) if the entity is a partnership - capital or profits of the partnership;

(c) if the entity is a trust estate - corpus or income of the trust estate; or

(d) in any case - securities issued by the entity.