INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 316 - Demutualisation of friendly society health or life insurers  

Subdivision 316-B - Capital gains and losses connected with the demutualisation  

Other entities ' gains and losses

SECTION 316-80   316-80   Disregarding other entities ' capital gains and losses  


Disregard an entity ' s *capital gain or *capital loss from a *CGT event that happens under the demutualisation if:


(a) the entity is established solely for the purpose of participating in the demutualisation and is not a lost policy holders trust (see section 316-155 ); and


(b) the CGT event:


(i) happens before or at the same time as the allocation or distribution of the accumulated surplus of the *friendly society; and

(ii) is connected to that allocation or distribution.
Note:

The allocation or distribution of the accumulated surplus could happen through an arrangement involving more than one transaction.


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