Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-32
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CO-OPERATIVES AND MUTUAL ENTITIES
Division 316
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Demutualisation of friendly society health or life insurers
Subdivision 316-D
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Lost policy holders trust
Guide to Subdivision 316-D
SECTION 316-150 What this Subdivision is about
(a) capital gains or losses from CGT events happening to beneficiaries
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interests in the trust are disregarded, except where the capital proceeds include money; and
(b) when a CGT event happens involving the transfer of the shares or rights to a beneficiary, or a beneficiary
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s absolute entitlement to them, the trustee
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s capital gain or loss is disregarded and the beneficiary has the same cost base and time of acquisition as the trustee; and
(c) the trustee is assessed on any capital gains from other CGT events happening to the shares or rights.
View history note
Hide history noteSECTION 316-150 What this Subdivision is about
If the demutualisation creates a trust just to hold shares, rights to acquire shares or money for entities that were members of the friendly society or insured through the society or its subsidiary, or are successors of such entities, then:
| Application | |
| 316-155 | Lost policy holders trust |
| Effects of CGT events happening to interests and assets in trust | |
| 316-160 | Disregarding beneficiaries ' capital gains and losses, except some involving receipt of money |
| 316-165 | Taking account of some capital gains and losses involving receipt of money by beneficiaries |
| 316-170 | Roll-over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust |
| 316-175 | Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust |
| 316-180 | Subdivision 126-E does not apply |
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