Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 10E - PDFs (pooled development funds)  

Subdivision A - Shares in PDFs  

SECTION 124ZR   EFFECT OF COMPANY CEASING TO BE A PDF  

124ZR(1)   [ Shares cease to be PDF shares ]  

This section applies to shares in a company that a taxpayer holds when the company ceases to be a PDF.

124ZR(2)   [ Shares deemed sold and rebought ]  

For the purposes of this Act (except Parts 3-1 and 3-3 (about CGT) of the Income Tax Assessment Act 1997 ), the taxpayer is taken:

(a) to have sold the shares immediately before the company ceased to be a PDF; and

(b) to have rebought the shares immediately after the company so ceased;

for a consideration equal to the market value of the shares immediately after the company so ceased.

124ZR(3)   [ CGT assets deemed disposed of and re-acquired ]  

Parts 3-1 and 3-3 (about CGT) of the Income Tax Assessment Act 1997 apply as if the taxpayer:

(a) had disposed of the CGT assets constituted by the shares, and had done so immediately before the company ceased to be a PDF; and

(b) had re-acquired those assets immediately afterwards;

for an amount equal to the shares ' market value immediately after the company so ceased.