Income Tax Assessment Act 1997
A company has a non-share capital account if:
(a) the company issues a *non-share equity interest in the company on or after 1 July 2001; or
(b) the company has issued a non-share equity interest in the company before 1 July 2001 that is still in existence on 1 July 2001; or
(c) a *debt interest in the company changes at a particular time (the change time ) to an *equity interest in the company because of subsection 974-110(1) or (2) ; or
(d) the following conditions are satisfied in relation to an interest in the company:
(i) immediately before subsection 974-75(4) ceases to have effect, the interest is taken to be a debt interest in the company because of that subsection;
(ii) the interest is an equity interest in the company at the time (the change time ) that is immediately after that cessation;
(iii) subsection 974-75(6) does not apply to the interest in relation to the income year that includes the change time; or
(e) the following conditions are satisfied in relation to an interest in the company:
(i) subsection 974-75(6) applies to the interest in relation to a particular income year;
(ii) that subsection does not apply to the interest in relation to the next income year;
(iii) the interest is an equity interest in the company at the time (the change time ) that is the start of that next income year.
The account continues in existence even if the company ceases to have any *non-share equity interests on issue. 164-10(3)
The balance of the account cannot fall below nil. 164-10(4)
The only credits and debits that may be made to the account are those provided for in sections 164-15 and 164-20 .
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