Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-E - Exchange of shares or units  

SECTION 124-240  

124-240   Exchange of shares in the same company  
You can choose to obtain a roll-over if:

(a) you own *shares (the original shares ) of a certain class in a company; and

(b) the company redeems or cancels all shares of that class; and

(c) the company issues you with new shares (and you receive nothing else) in substitution for the original shares; and

(d) the *market value of the new shares just after they were issued is at least equal to the market value of the original shares just before they were redeemed or cancelled; and

(e) the *paid-up share capital of the company just after the new shares were issued is the same as just before the original shares were redeemed or cancelled; and

(f) one of these requirements is satisfied:

(i) you are an Australian resident at the time of the redemption or cancellation; or

(ii) if you are a foreign resident at that time - the original shares were *taxable Australian property just before that time and the new shares are taxable Australian property when they are issued.

Note 1:

The roll-over consequences are set out in Subdivision 124-A . The original assets are the original shares. The new assets are the new shares.

Note 2:

Section 103-25 tells you when you have to make the choice.