INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3CC - How to treat shareholdings of less than 1%  

Special tracing rules for listed public companies  

SECTION 160ZNSP   NOTIONAL SHAREHOLDER TAKEN TO HAVE MINIMUM VOTING CONTROL, DIVIDEND RIGHTS AND CAPITAL RIGHTS  

160ZNSP(1)   Minimum control of voting power.  

If the ownership test time is after the start of the test period and:

(a) the voting power in the head company or interposed company that the notional shareholder controls at that time;

is greater than:

(b) the voting power in the company that the notional shareholder controlled at the start of that period;

the notional shareholder is taken to control voting power in the company at that time only to the extent that it controlled it at the start of that period.

160ZNSP(2)   Minimum percentage of rights to dividends and capital.  

If the ownership test time is after the start of the test period and:

(a) the percentage of the dividends or distributions of capital of the head company or interposed company that the notional shareholder has the right to receive at that time;

is greater than:

(b) the percentage (the lower percentage ) of the dividends or distributions of capital of the company that the notional shareholder had the right to receive at the start of that period;

the notional shareholder is taken to have the right to receive the lower percentage of the dividends or distributions of capital at that time.