New Business Tax System (Integrity and Other Measures) Act 1999 (Incorporating amendments up to Act No. 78 of 2001) (169 of 1999)

Schedule 6   Changes in ownership or control of company

Income Tax Assessment Act 1997

11   Sections 165-150, 165-155, 165-160 and 165-165

Repeal the sections, substitute:

165-150 Who has more than 50% of the voting power in the company

The primary test

(1) Applying the primary test in respect of a company: if there are persons who at a particular time beneficially own (between them) *shares that carry (between them) the right to exercise more than 50% of the voting power in the company, those persons have more than 50% of the voting power in the company at that time.

The alternative test

(2) Applying the alternative test in respect of a company: if it is the case, or it is reasonable to assume, that there are persons (none of them companies) who (between them) at a particular time have beneficial interests (directly, or indirectly through one or more interposed entities) in *shares in the company that carry (between them) more than 50% of the voting power in the company, those persons have more than 50% of the voting power in the company at that time.

165-155 Who has rights to more than 50% of the company's dividends

The primary test

(1) Applying the primary test in respect of a company: if there are persons who at a particular time beneficially own (between them) *shares that carry (between them) the right to receive more than 50% of any dividends that the company may pay, those persons have more than 50% of the company's dividends at that time.

The alternative test

(2) Applying the alternative test in respect of a company: if it is the case, or it is reasonable to assume, that there are persons (none of them companies) who (between them) at a particular time have beneficial interests (directly, or indirectly through one or more interposed entities) in *shares in the company that carry (between them) the right to receive more than 50% of any dividends that the company may pay, those persons have more than 50% of the company's dividends at that time.

165-160 Who has rights to more than 50% of the company's capital distributions

The primary test

(1) Applying the primary test in respect of a company: if there are persons who at a particular time beneficially own (between them) *shares that carry (between them) the right to receive more than 50% of any distribution of capital of the company, those persons have more than 50% of the company's capital distributions at that time.

The alternative test

(2) Applying the alternative test in respect of a company: if it is the case, or it is reasonable to assume, that there are persons (none of them companies) who (between them) at a particular time have beneficial interests (directly, or indirectly through one or more interposed entities) in *shares in the company that carry (between them) the right to receive more than 50% of any distribution of capital of the company, those persons have more than 50% of the company's capital distributions at that time.

165-165 Rules about tests for a condition

(1) A person must beneficially own, or beneficially own indirect interests in, exactly the same *shares at all relevant times if those shares are to be taken into account in determining whether a condition has been satisfied.

(2) A person is taken to have beneficially owned, or beneficially owned indirect interests in, a particular *share at all relevant times if:

(a) where the share has been divided into 2 or more shares - at all relevant times after the division took place the person beneficially owned, or beneficially owned indirect interests in, the shares into which the first share was divided; or

(b) where the share has been consolidated with other shares that the person beneficially owned, or in which the person beneficially owned indirect interests - at all relevant times after the consolidation took place the person beneficially owned, or beneficially owned indirect interests in, the share formed by the consolidation of the first share and the other shares.

(3) A *public company is taken to satisfy the primary test if it is reasonable to assume that the test is satisfied.