Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 9AA - Demutualisation of insurance companies and affiliates  

Subdivision B - Key concepts and related definitions  

SECTION 121AC   MUTUAL AFFILIATE COMPANY  

121AC(1)    
A mutual affiliate company is a company that satisfies the following conditions:

(a) it is limited by guarantee;

(b) it is not an insurance company;

(c) at least 75% of the policyholders of a mutual insurance company are members of it;

(d) it did not divide its profits among its members during the 10 years ending on 9 May 1995;

(e) on a winding-up, its profits are not divisible among its members in their capacity as such.

121AC(2)    

If the company is a mutual entity (within the meaning of the Corporations Act 2001 ) then, for the purposes of subsection (1), disregard the following:

(a) any MCIs (within the meaning of that Act) issued by the company;

(b) any dividends or profits paid or payable in respect of such MCIs;

(c) any members of the company who are members by virtue of holding such MCIs.