Income Tax Assessment Act 1936
SCHEDULE 2H
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DEMUTUALISATION OF MUTUAL ENTITIES OTHER THAN INSURANCE COMPANIES AND HEALTH INSURERS
Division 326
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DEMUTUALISATION
If:
(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and
(b) the disposer is a post-CGT member;
(c) to have paid for the acquisition of the share or interest both of the following amounts:
(d) to have paid the amount referred to in subparagraph (c)(i) on the demutualisation resolution day;
(e) to have paid any amount referred to in subparagraph (c)(ii) when it was actually paid;
(f) to have acquired the share or interest on the demutualisation resolution day.
326-150(2)
In the formula in subparagraph (1)(c)(i):
Subdivision 326-E
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CGT consequences of disposal of demutualisation shares or interests in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a company that is not a listed public company
SECTION 326-150
DISPOSAL BY POST-CGT MEMBER OF A DEMUTUALISATION SHARE (OTHER THAN A DEMUTUALISATION ORIGINAL SHARE) OR AN INTEREST IN SUCH A SHARE
326-150(1)
If:
(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and
(b) the disposer is a post-CGT member;
then, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:
(c) to have paid for the acquisition of the share or interest both of the following amounts:
(i) the amount worked out by using the formula:
Undeducted membership
costs× Share or interest
disposed of
Number of
disposer ' s shares
(ii) any amount actually paid for the acquisition;
(d) to have paid the amount referred to in subparagraph (c)(i) on the demutualisation resolution day;
(e) to have paid any amount referred to in subparagraph (c)(ii) when it was actually paid;
(f) to have acquired the share or interest on the demutualisation resolution day.
326-150(2)
In the formula in subparagraph (1)(c)(i):
number of disposer
'
s shares
means the number of demutualisation shares issued to the disposer or in which the disposer had an interest.