Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 830 - Foreign hybrids  

Subdivision 830-D - Special rules applicable when an entity becomes or ceases to be a foreign hybrid  

Note:

In the case of a foreign hybrid company, references in this Subdivision that relate to partnerships are to be read subject to Subdivision 830-B . For example, a reference to a partner will be a reference to a shareholder in the company who is treated by Subdivision 830-B as a partner.

SECTION 830-125   How long interest in asset, or asset, held  

Partner's interest in asset when entity becomes a foreign hybrid

830-125(1)    
If an entity becomes a *foreign hybrid company in relation to an income year, the interest that a partner has in an asset as mentioned in section 830-35 is taken to have been held by the partner (except for the purposes of having the *tax cost of the interest set) from the later of the following times:

(a) when the entity *acquired the asset;

(b) when the partner acquired its *shares in the entity.

Entity's asset when it ceases to be a foreign hybrid company

830-125(2)    
If:

(a) an entity is not a *foreign hybrid company in relation to an income year (the post-hybrid year ); and

(b) the entity was a *foreign hybrid company in relation to the preceding income year; and

(c) during:

(i) that preceding income year; or

(ii) any earlier income year in relation to which the entity was also a foreign hybrid;

but not at the start of the first income year in relation to which the entity was a foreign hybrid company, the partners in the foreign hybrid company *acquired an interest in an asset that is an asset of the entity at the start of the post-hybrid year;

the asset is taken to have been held by the entity (except for the purposes of having the *tax cost of the asset set) from the time the partners acquired their interests in the asset.