Treasury Laws Amendment (2019 Measures No. 3) Act 2020 (64 of 2020)

Schedule 3   Miscellaneous amendments

Part 2   Amendments commencing first day of the next quarter

Income Tax Assessment Act 1997

81   At the end of section 166-230

Add:

Acquisition of tested company by new interposed entity

(5) If:

(a) a new entity (the new interposed entity ) that is a company acquires all the *shares in the tested company; and

(b) assuming that the time immediately before the acquisition had been an *ownership test time, section 166-225 would have applied the tests to the tested company as if there were a single notional entity as described in subsection 166-225(2) in respect of some or all of the *voting stakes, *dividend stakes or *capital stakes in the tested company; and

(c) the new interposed entity has the same classes of shares as the tested company; and

(d) the shares are not *redeemable shares; and

(e) each entity that held a proportion of the voting stakes, dividend stakes or capital stakes in the tested company immediately before the acquisition (disregarding section 166-225) holds the same proportion, or a reasonably equivalent proportion, of that kind of stake in the new interposed entity immediately after the acquisition;

then, at all times that the single notional entity mentioned in paragraph (b) held or is taken to have held a stake in the tested company, the new interposed entity is taken to have held that stake.

(6) Except for the purposes of determining whether a time is an alteration time (within the meaning of section 165-115L), section 166-272 (which is about the same shares or interests) is to be disregarded when applying subsection (5) of this section.