Income Tax Assessment Act 1997



Division 615 - Roll-overs for business restructures  

Subdivision 615-A - Choosing to obtain roll-overs  

SECTION 615-10   Redeeming or cancelling interests in one entity for shares in a company  

You can choose to obtain a roll-over if you are a *member of a company or a unit trust (the original entity ), and under a *scheme for reorganising its affairs:

(a) a company (the interposed company ) *acquires one or more, but not all, of the *shares or units in the original entity; and

(b) these are the first shares or units that the interposed company acquires in the original entity; and

(c) you and at least one other entity (the exchanging members ) own all the remaining shares or units in the original entity; and

(d) those remaining shares or units are redeemed or cancelled; and

(e) each exchanging member receives shares (and nothing else) in the interposed company in return for their shares or units in the original entity being redeemed or cancelled;

and the requirements in Subdivision 615-B are satisfied.


For paragraph (e), see section 124-20 if an exchanging member uses a share sale facility.

You are taken to have chosen to obtain the roll-over if:

(a) immediately before the completion time (see section 615-15 ), the original entity is the *head company of a *consolidated group; and

(b) immediately after the completion time, the interposed company is the head company of the group.


The consolidated group continues in existence because of section 703-70 .

The original entity, or its trustee if it is a unit trust, can issue other *shares or units to the interposed company as part of the *scheme.


Some of the interposed company ' s shares or units in the original entity may be taken to be acquired before 20 September 1985: see section 615-65 .


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