Taxation Laws Amendment Act (No. 2) 1993 (18 of 1993)

PART 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 7   Amendments relating to foreign investment

Subdivision K   Redemption price

48   How market value is ascertained

Section 539 of the Principal Act is amended:

(a) by inserting in paragraph (3) (a) "company or" before "trust";

(b) by omitting paragraph (3) (b) and substituting the following paragraph:

"(b) the interest is included in a class of interests for which, at intervals of not more than 12 months:

(i) the company, or the trustee or manager of the trust, offered a buy-back or redemption price; or

(ii) an associate of the company, or of the trustee or manager, offered a purchase price; and";

(c) by omitting from paragraph (3) (c) "or redemption" and substituting ", redemption or purchase";

(d) by inserting in subparagraph (3) (c) (ii) "company or" before "trust";

(e) by omitting from subsection (4) all the words after paragraph (b) and substituting:

"(c) neither subsection (2) nor (3) applies to the class of interests in which the interest is included; and

(d) subsection (2) or (3) would apply to the class of interests in both of the following cases:

(i) if the relevant day were instead the last reporting day for the FIF before 1 January 1993;

(ii) if the relevant day were instead the next reporting day for the FIF on or after 1 January 1993, being a reporting day that is not more than 12 months after the one referred to in subparagraph (i);

the market value of the interest on the relevant day is the average of the 2 market values that would be applicable under paragraph (d) on the reporting days referred to in subparagraphs (d) (i) and (ii).".