Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 149 - When an asset stops being a pre-CGT asset  

Subdivision 149-F - How to treat a ``demutualised'' public entity  

SECTION 149-170   Effect of demutualisation of interposed company  

149-170(1)  
This section modifies the treatment of evidence that an entity (the head entity ) gives the Commissioner under section 149-55 as to the *ultimate owners who had *underlying interests in the asset at a particular time if another entity (the interposed company ):


(a) was:


(i) a *mutual insurance company; or

(ii) a *mutual affiliate company;
at the end of the *starting day (as determined under subsection 149-60(6)) for the head entity; and


(b) has since stopped being a company of either of those kinds, but either:


(i) has continued in existence as a company covered by paragraph 149-50(1)(a) or (e) or a *publicly traded unit trust; or

(ii) has undergone a demutualisation in relation to which Division 316 (Demutualisation of friendly society health or life insurers) applied and has continued in existence as a company; and


(c) when it stopped being an entity of either of those kinds (the stopping time ), had more than 50 members.

149-170(2)  
The head entity may require the Commissioner to treat the evidence on the assumption that an *ultimate owner who:


(a) immediately before the stopping time was a member of the interposed company; and


(b) immediately after the stopping time had, through the interposed company, an *underlying interest in the asset;

had the interest at all times from and including the end of the *starting day until immediately after the stopping time.


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