Treasury Laws Amendment (2019 Measures No. 3) Act 2020 (64 of 2020)

Schedule 3   Miscellaneous amendments

Part 2   Amendments commencing first day of the next quarter

Income Tax Assessment Act 1997

82   At the end of section 166-270

Add:

Acquisition of tested company by new interposed entity - minimum control of voting power

(3) If:

(a) the *ownership test time is after the start of the *test period; and

(b) at the start of the test period, a single notional entity mentioned in section 166-225 had voting power in a company (disregarding subsection 166-230(5)); and

(c) under subsection 166-230(5), a new interposed entity is taken to have held that voting power at the start of the test period; and

(d) at the ownership test time, the voting power in the company held indirectly by stakeholders covered by subsection 166-230(1) is greater than the voting power that the single notional entity had at the start of the test period;

then the stakeholders referred to in paragraph (d) are, collectively, taken to have indirect voting power in the company at the ownership test time only to the extent that the single notional entity had it at the start of the test period.

Acquisition of tested company by new interposed entity - minimum percentage of rights to dividends and capital

(4) If:

(a) the *ownership test time is after the start of the *test period; and

(b) at the start of the test period, a single notional entity mentioned in section 166-225 had a percentage of rights to the *dividends or distributions of capital of a company (disregarding subsection 166-230(5)); and

(c) under subsection 166-230(5), a new interposed entity is taken to have had those rights at the start of the test period; and

(d) the percentage that stakeholders covered by subsection 166-230(1) have rights to indirectly at the ownership test time is greater than the percentage (the lower percentage ) of the dividends or distributions of capital of the company that the single notional entity had rights to at the start of the test period;

then the stakeholders referred to in paragraph (d) are, collectively, taken to have indirect rights to the lower percentage of the dividends or distributions of capital at the ownership test time.