Financial Sector Legislation Amendment (Restructures) Act 2007 (117 of 2007)

Schedule 2   Restructure relief: taxation aspects

Income Tax Assessment Act 1997

1   After section 124-380

Insert:

124-382 Special rules for ADI restructures

(1) This section applies if:

(a) the interposed company is a non-operating holding company within the meaning of the Financial Sector (Business Transfer and Group Restructure) Act 1999; and

(b) a restructure instrument under Part 4A of that Act is in force in relation to the interposed company; and

(c) because of the restructure to which the instrument relates, an *ADI becomes a subsidiary (within the meaning of that Act) of the interposed company; and

(d) the original company is:

(i) the ADI; or

(ii) part of an extended licensed entity (within the meaning of the *prudential standards) that includes the ADI.

Certain preference shares disregarded

(2) For the purposes of this Subdivision, disregard any *shares in the original company that can be disregarded under subsection 703-37(4).

Certain foreign-owned shares disregarded

(3) For the purposes of this Subdivision:

(a) disregard any *shares in the original company covered by subsection (4); and

(b) disregard any shares in the interposed company mentioned in paragraph (4)(d).

(4) This section covers *shares in the original company if:

(a) the shares are owned by a foreign holder within the meaning of the Corporations Act 2001; and

(b) an agent or nominee is appointed by (or on behalf of) the foreign holder; and

(c) the shares are disposed of to the interposed company, or are cancelled; and

(d) as a result, the agent or nominee acquires shares in the interposed company; and

(e) the agent or nominee disposes of the shares in the interposed company (whether separately or together with other shares covered by paragraph (d)); and

(f) the agent or nominee:

(i) gives the foreign holder an amount equivalent to the *capital proceeds of the disposal (less expenses); or

(ii) if the shares are disposed of together with other shares covered by paragraph (d) - gives the foreign holder an amount equivalent to the foreign holder's proportion of the *capital proceeds of the disposal (less expenses).