INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2H - DEMUTUALISATION OF MUTUAL ENTITIES OTHER THAN INSURANCE COMPANIES AND HEALTH INSURERS  

Division 326 - DEMUTUALISATION  

Subdivision 326-G - CGT consequences of disposal of rights or interests resulting from extinguishment of membership rights  

SECTION 326-190   EXTINGUISHMENT OF RIGHT TO SHARES IN DEMUTUALISED ENTITY BY THE ISSUE OF THE SHARES  

326-190(1)  
If, under the direct method of demutualisation or the holding company method of demutualisation, shares in a demutualised entity are issued to an existing member, Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 do not apply in respect of any CGT event constituted by the extinguishment of the member ' s right to have the shares issued to the member.

326-190(2)  


If, under the combined direct and holding company method of demutualisation, shares in a demutualised entity or in a holding company are issued to an existing member, Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 do not apply in respect of any CGT event constituted by the extinguishment of the member ' s rights to have the shares issued to the member.

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