Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 703 - Consolidated groups and their members  

Basic concepts  

SECTION 703-33   Transfer time for sale of shares in company  

703-33(1)    
This section applies if:

(a) under a contract:

(i) a person (the seller ) stops being entitled to be registered as the holder of a ^* share in a company at a time (the transfer time ); and

(ii) another person (the buyer ) becomes entitled to be registered as the holder of the share in the company at the transfer time; and

(b) as a result of the contract, the seller stops being the beneficial owner of the share, and the buyer becomes the beneficial owner of the share; and

(c) the seller and the buyer dealt with each other at ^* arm's length in relation to the contract; and

(d) the seller and the buyer were not ^* associates of one another at any time during the period:

(i) starting when the contract was entered into; and

(ii) ending at the transfer time.

703-33(2)    
For the purposes of subsection 703-30(1) :

(a) the seller is taken to have stopped being the beneficial owner of the share at the transfer time; and

(b) the buyer is taken to have become the beneficial owner of the share at the transfer time.