Income Tax Assessment Act 1936
SCHEDULE 2H
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DEMUTUALISATION OF MUTUAL ENTITIES OTHER THAN INSURANCE COMPANIES AND HEALTH INSURERS
Division 326
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DEMUTUALISATION
If:
(a) a payment out of the assets of a demutualised entity is made to a taxpayer who holds shares or an interest in shares in the entity; and
(b) the amount paid is a dividend that is not included in the taxpayer ' s assessable income;
Subdivision 326-L
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CGT consequences of payment to member of demutualised entity out of accumulated surplus of the entity
SECTION 326-225
326-225
PAYMENT OUT OF ASSETS OF DEMUTUALISED ENTITY THAT IS NOT INCLUDED IN ASSESSABLE INCOME IS TAKEN NOT TO BE A DIVIDEND
If:
(a) a payment out of the assets of a demutualised entity is made to a taxpayer who holds shares or an interest in shares in the entity; and
(b) the amount paid is a dividend that is not included in the taxpayer ' s assessable income;
the payment is taken, for the purposes of section 104-135 of the Income Tax Assessment Act 1997 , not to be the payment of a dividend.
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