INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 1A - Circumstances in which a taxpayer can qualify for a franking credit, a franking rebate or the intercorporate dividend rebate  

Subdivision A - Preliminary  

SECTION 160APHF   SUBSTANTIALLY IDENTICAL SECURITIES  

160APHF(1)   Definition.  

In this Division:

substantially identical securities
, in relation to shares, or in relation to an interest in shares, in a company (the relevant company ), means property that is fungible with, or economically equivalent to, the shares or interest.

160APHF(2)   Meanings of subsections (3) and (4) not limited by subsection (1).  

Subsections (3) and (4) do not limit, by implication, the meaning of subsection (1).

160APHF(3)   Substantially identical securities in relation to shares.  

The following are taken to be substantially identical securities in relation to shares (the relevant shares ) in the relevant company:


(a) other shares in the relevant company that are of the same class as the relevant shares;


(b) other shares in the relevant company that are of a different class from the relevant shares where there is no material difference between those classes of shares or the other shares are exchangeable at a fixed rate for the relevant shares;


(c) shares in another company that holds predominantly shares in the relevant company of the same class as shares of any of the kinds mentioned in paragraphs (a) and (b);


(d) shares in another company that are, or other property that is, exchangeable at a fixed rate for the relevant shares or for shares in the relevant company of any of the kinds mentioned in paragraphs (a) and (b);


(e) a vested and indefeasible interest in a trust whose assets consist predominantly of shares in the relevant company of the same class as shares of any of the kinds mentioned in paragraphs (a) and (b);


(f) an interest in a partnership whose assets consist predominantly of shares in the relevant company of the same class as shares of any of the kinds mentioned in paragraphs (a) and (b).

160APHF(4)   Substantially identical securities in relation to interests in shares.  

The following interests are taken to be substantially identical securities in relation to an interest in shares (the relevant shares ) in the relevant company:


(a) a vested and indefeasible interest in a trust whose assets consist predominantly of:


(i) other shares in the relevant company that are of the same class as the relevant shares; or

(ii) other shares in the relevant company that are of a different class from the relevant shares where there is no material difference between those classes of shares or the other shares are exchangeable at a fixed rate for the relevant shares;


(b) an interest in a partnership whose assets consist predominantly of:


(i) other shares in the relevant company that are of the same class as the relevant shares; or

(ii) other shares in the relevant company that are of a different class from the relevant shares where there is no material difference between those classes of shares or the other shares are exchangeable at a fixed rate for the relevant shares;


(c) if the interest in the relevant shares is a unit in a unit trust - any other unit of the same class in the trust;


(d) if the interest in the relevant shares is a vested and indefeasible interest in the whole of a share in the relevant company - that share or any other share of the same class;


(e) if the interest in the relevant shares is a vested and indefeasible interest in part of a share in the relevant company - any other vested and indefeasible interest in a corresponding part of another share in the relevant company of the same class;


(f) if the interest in the relevant shares is exchangeable at a fixed rate for another interest in shares, or for shares, in the relevant company - the other interest or the shares, as the case may be.

160APHF(5)   Commissioner may determine an interest in the corpus of a trust to be vested and indefeasible.  

If:


(a) a person has an interest in so much of the corpus of a trust as is comprised by shares or an interest in shares; and


(b) apart from this subsection, the interest in the trust would not be a vested or indefeasible interest; and


(c) the Commissioner considers that the interest in the trust should be treated as being vested and indefeasible, having regard to:


(i) the circumstances in which the interest is capable of not vesting or the defeasance can happen; and

(ii) the likelihood of the interest not vesting or the defeasance happening; and

(iii) the nature of the trust; and

(iv) any other matter the Commissioner thinks relevant;

the Commissioner may determine that the interest in the trust is to be taken to be vested and indefeasible.

160APHF(6)   Effect of determination.  

A determination made under subsection (5) has effect according to its terms.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.