S 488 repealed by No 114 of 2010, s 3 and Sch 1 item 37, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. For saving provisions, see note under Part
heading. S 488 formerly read:
SECTION 488 WHAT IS A DISPOSAL OR ACQUISITION OF AN INTEREST IN A FIF OR A FLP
Some of the provisions of this Part refer to an interest in a FIF or a FLP having been disposed of or acquired and this section determines what is such a disposal or acquisition for the purposes of those provisions.
Subject to this section, if a change has occurred in the ownership of an interest in a FIF or a FLP, the change is taken to have effected a disposal of the interest by the person who owned it immediately before the change and an acquisition of the interest by the person who owned it immediately after the change.
A change in the legal ownership of an interest is not a change in the ownership of the interest for the purposes of this section unless there is also a change in the beneficial ownership of the interest.
A reference in subsection (2) to a change in the ownership of an interest is a reference to a change that has occurred in any way, including any of the following ways:
by the execution of an instrument;
by the entering into of a transaction;
by the transmission of the interest by operation of law;
by the doing of any other act or thing;
by the occurrence of any event.
Without limiting the generality of subsection (4), a change is taken to have occurred in the ownership of an interest by:
a declaration of trust in relation to the interest under which the beneficiary is absolutely entitled to the interest as against the trustee; or
the release, discharge, satisfaction, surrender, forfeiture, expiry, abandonment or extinction, at law or in equity, of the interest; or
the redemption or buy-back in whole or in part, or the cancellation, of the interest.
An issue to a person of an interest in a FIF or a FLP is an acquisition of the interest by the person.
None of the following is an acquisition or disposal of an interest in a FIF or a FLP:
the conversion of a convertible note issued by a FIF into another interest in the FIF pursuant to a right conferred by the convertible note if no consideration is paid or payable in respect of the exercise of that right;
the exercise of any other right in relation to an interest in a FIF or a FLP if no consideration is paid or payable in respect of the exercise of that right;
the exchange of an interest in a FIF or a FLP for a different interest in the FIF or FLP of the same value.
S 488 inserted by No 190 of 1992.