Tax and Superannuation Laws Amendment (2015 Measures No. 4) Act 2015 (135 of 2015)
Schedule 1 Scrip for scrip roll-over
Income Tax Assessment Act 1997
8 Section 124-784
Repeal the section, substitute:
124-783A Rights that affect stakes
(1) An entity has a significant stake in another entity if:
(a) the first entity has one or more *stake options in the other entity; and
(b) the first entity would have such a stake (under section 124-783) if the first entity acquired *stake interests in the other entity under any of those stake options.
Note: Paragraph (b) is satisfied if there are any circumstances (e.g. the first entity exercises some but not all of the stake options) in which the first entity would have a significant stake in the other entity, even if in other circumstances the first entity would not have such a stake.
(2) An entity, or 2 or more entities, have a common stake in the original entity just before the *arrangement started and in the replacement entity just after the arrangement was completed if:
(a) the entities:
(i) had one or more *stake options in the original entity before the arrangement started; or
(ii) have one or more stake options in the replacement entity; and
(b) the entities would have such stakes (under section 124-783) if:
(i) the entities had acquired *stake interests in the original entity under any of the stake options mentioned in subparagraph (a)(i); or
(ii) the entities acquired stake interests in the replacement entity under some or all of the stake options mentioned in subparagraph (a)(ii).
(3) Something is a stake option an entity has in another entity if it gives the first entity, or its *associates, a right to acquire the following ( stake interests ):
(a) if the other entity is a company:
(i) voting rights in the company; or
(ii) the right to receive any part of any *dividends that the company may pay; or
(iii) the right to receive any part of any distribution of capital of the company;
(b) if the other entity is a trust - the right to receive any part of any distribution to beneficiaries of the trust of income or capital of the trust;
and the acquisition could occur before the end of 5 years after the *arrangement was completed.
Example 1: An option.
Example 2: A share that gives a voting right that is temporarily supressed.
(4) For the purposes of subsection (1), treat the reference in subparagraph (3)(a)(i) to voting rights as being a reference to *shares carrying voting rights.
(5) This section does not limit subsections 124-783(6) to (10).
124-784 Cost base of equity or debt given within acquiring group
(1) This section allocates an appropriate *cost base to equity issued, or new debt owed, under the *arrangement, by a member of a *wholly-owned group to another member (the recipient ) of the group, if:
(a) the acquiring entity is a member of the group; and
(b) the cost base of an original interest was transferred or allocated under section 124-782 because the original interest holder is a *significant stakeholder or a *common stakeholder for the arrangement.
Allocation of cost base
(2) The first element of the *cost base of the equity or debt for the recipient is that part of the cost base of the original interest transferred or allocated under section 124-782 as:
(a) may be reasonably allocated to the equity or debt; and
(b) is not more than the *market value of the equity or debt just after the *arrangement was completed.
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