Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-5
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CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS
Division 165
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Income tax consequences of changing ownership or control of a company
Subdivision 165-D
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Tests for finding out whether the company has maintained the same owners
Rules affecting the operation of the tests
SECTION 165-205
Death of share owner
165-205(1)
If an individual beneficially owns *shares in a company when he or she dies, this section applies if and while the shares:
(a) are owned by the trustee of the deceased ' s estate; or
(b) are beneficially owned by someone who receives them as a beneficiary of the deceased ' s estate. 165-205(2)
For the purposes of a test:
(a) the *shares are taken to continue to be beneficially owned by the deceased; and
(b) as a result of being taken to continue to beneficially own the shares, the deceased is taken to continue:
If an individual beneficially owns *shares in a company when he or she dies, this section applies if and while the shares:
(a) are owned by the trustee of the deceased ' s estate; or
(b) are beneficially owned by someone who receives them as a beneficiary of the deceased ' s estate. 165-205(2)
For the purposes of a test:
(a) the *shares are taken to continue to be beneficially owned by the deceased; and
(b) as a result of being taken to continue to beneficially own the shares, the deceased is taken to continue:
(i) to have any rights to exercise, or to be able to control (whether directly, or indirectly through one or more interposed entities), any of the voting power in the company; and
(ii) to have any rights to receive for the deceased ' s own benefit (whether directly or *indirectly) any *dividends that the company may pay; and
(iii) to have any rights to receive for the deceased ' s own benefit (whether directly or indirectly) any distributions of capital of the company.
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