Income Tax Assessment Act 1936
PART III
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LIABILITY TO TAXATION
Division 16K
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Effect of buy-backs of shares
Where a buy-back is an on-market purchase, then:
(a) in determining, for the purposes of this Act:
(b) whether the seller makes a capital gain or capital loss;
Subdivision D
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On-market purchases
SECTION 159GZZZS
159GZZZS
CONSIDERATION IN RESPECT OF ON-MARKET PURCHASE
Where a buy-back is an on-market purchase, then:
(a) in determining, for the purposes of this Act:
(i) whether an amount is included in the assessable income of the seller under a provision of this Act other than Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 (about CGT); or
(ii) whether an amount is allowable as a deduction to the seller; or
(b) whether the seller makes a capital gain or capital loss;
in respect of the buy-back, the seller is taken to have received or to be entitled to receive, as consideration in respect of the sale of the share, the purchase price in respect of the buy-back of the share.
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