INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3CC - How to treat shareholdings of less than 1%  

Special tracing rules for listed public companies  

SECTION 160ZNSN   SHAREHOLDINGS OF LESS THAN 1% IN AN INTERPOSED LISTED PUBLIC COMPANY  

160ZNSN(1)   [Modification of tests application]  

This Division also modifies how the ownership tests are applied to the head company if another listed public company (the interposed company ) meets the conditions in subsections (2) and (3).

Note:

For the ownership tests: see sections 160ZNSH , 160ZNSI and 160ZNSJ .

160ZNSN(2)   [Interposition]  

The interposed company must be interposed between the head company and persons (none of them companies) who:


(a) control (or are able to control) voting power in the head company indirectly through the interposed company; or


(b) have the right to receive, for their own benefit and indirectly through the interposed company, any dividends the head company may pay; or


(c) have the right to receive, for their own benefit and indirectly through the interposed company, any distributions of capital of the head company.

160ZNSN(3)   [Required shareholdings]  

The interposed company must have:


(a) voting shareholdings of less than 1%; or


(b) dividend shareholdings of less than 1%; or


(c) capital shareholdings of less than 1%.


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