Income Tax Assessment Act 1997
For the purposes of this Subdivision, an entity (the investor ) is treated as owning a *membership interest (the roll-over interest ) in the receiving trust at a time (the deeming time ), if:
(a) the investor owned a membership interest in the transferring trust; and
(b) a trust is created, or a transfer happens, (the transaction ) as mentioned in paragraph 126-225(1)(a) in relation to *CGT assets of the transferring trust; and
(i) a *foreign law impedes the ability of the receiving trust to issue or transfer the roll-over interest to the investor; or
it is *arranged that the receiving trust will issue or transfer the roll-over interest to another entity (the facility ) under the transaction instead of to the investor; and
(ii) it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of the receiving trust to issue or transfer the roll-over interest to the investor;
(d) in accordance with that arrangement and as a result of the transaction, the facility:
(i) becomes the owner of the roll-over interest; and
(ii) owns the roll-over interest at the deeming time; and
(e) under the arrangement, the investor is entitled to receive from the facility:
(i) an amount equivalent to the *capital proceeds of any *CGT event that happens in relation to the roll-over interest (less expenses); or
(ii) if a CGT event happens in relation to the roll-over interest together with CGT events happening in relation to other membership interests - an amount equivalent to the investor ' s proportion of the total capital proceeds of the CGT events (less expenses).
The facility is treated as not owning the roll-over interest at the deeming time.
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