Income Tax Assessment Act 1997
You can choose to obtain a roll-over if you are a *member of a company or a unit trust (the original entity ), and under a *scheme for reorganising its affairs:
(a) a company (the interposed company ) *acquires one or more, but not all, of the *shares or units in the original entity; and
(b) these are the first shares or units that the interposed company acquires in the original entity; and
(c) you and at least one other entity (the exchanging members ) own all the remaining shares or units in the original entity; and
(d) those remaining shares or units are redeemed or cancelled; and
(e) each exchanging member receives shares (and nothing else) in the interposed company in return for their shares or units in the original entity being redeemed or cancelled;
and the requirements in Subdivision 615-B are satisfied.
For paragraph (e), see section 124-20 if an exchanging member uses a share sale facility.
You are taken to have chosen to obtain the roll-over if:
(a) immediately before the completion time (see section 615-15 ), the original entity is the *head company of a *consolidated group; and
(b) immediately after the completion time, the interposed company is the head company of the group.
The consolidated group continues in existence because of section 703-70 .615-10(3)
The original entity, or its trustee if it is a unit trust, can issue other *shares or units to the interposed company as part of the *scheme.
Some of the interposed company ' s shares or units in the original entity may be taken to be acquired before 20 September 1985: see section 615-65 .