Tax Laws Amendment (2007 Measures No. 1) Act 2007 (56 of 2007)

Schedule 3   Employee share schemes and stapled securities

Part 2   Consequential amendments

Income Tax Assessment Act 1997

28   Subsection 719-30(2)

Repeal the subsection, substitute:

(2) For the purposes of this Division, in determining whether an entity is a *wholly-owned subsidiary of another entity, disregard:

(a) particular *shares in a company if the shares are covered by subsection (3) and the total number of those shares is not more than 1% of the number of ordinary shares in the company; and

(b) particular *membership interests in an entity if the membership interests are covered by subsection (5) and the total number of those membership interests is not more than 1% of the number of membership interests of that kind in the entity.