INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 197 - Tainted share capital accounts  

Subdivision 197-A - What transfers into a company ' s share capital account does this Division apply to?  

SECTION 197-20   197-20   Exclusion for amounts transferred leading to there being no shares with a par value - non-Corporations Act companies  


This Division does not apply to the transferred amount if:


(a) immediately before the transfer of the amount, the company was not incorporated under the Corporations Act 2001 ; and


(b) the transfer is under, or in accordance with, an *Australian law that requires or allows either or both of the following to become part of the company ' s *share capital account:


(i) the company ' s share premium account;

(ii) the company ' s capital redemption reserve; and


(c) the transfer is made as part of a process that leads to there being no *shares in the company that have a par value; and


(d) the amount is transferred from the company ' s share premium account or capital redemption reserve.


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