Income Tax Assessment Act 1936
PART III
-
LIABILITY TO TAXATION
Division 16K
-
Effect of buy-backs of shares
If a company buys-back a share then the buy-back, and any subsequent cancellation of the share, are disregarded for the purposes of:
(a) determining for the purposes of this Act:
(b) determining whether the company makes a capital gain or capital loss.
Subdivision B
-
Company buying-back shares
SECTION 159GZZZN
159GZZZN
BUY-BACK AND CANCELLATION DISREGARDED FOR CERTAIN PURPOSES
If a company buys-back a share then the buy-back, and any subsequent cancellation of the share, are disregarded for the purposes of:
(a) determining for the purposes of this Act:
(i) whether an amount is included in the assessable income of the company under a provision of this Act (other than a provision of Part 3-1 or 3-3 of the Income Tax Assessment Act 1997 (about CGT)); or
(ii) whether an amount is allowable as a deduction to the company; or
(b) determining whether the company makes a capital gain or capital loss.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.