INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZPF   IN SPECIE DISTRIBUTION OF SHARES BY TRUSTEE OF PUBLIC TRADING TRUST  

160ZZPF(1)   [Application of section]  

This section applies where:

(a) all of the following conditions are satisfied in relation to the disposal of particular shares in a company by the trustee of a unit trust:

(i) the shares were acquired by the trustee before 20 September 1985;

(ii) the shares were disposed of by the trustee to 2 or more taxpayers, being unitholders in the unit trust (in this section called the ``unitholding taxpayers'' );

(iii) each of the disposals was in satisfaction of an entitlement in respect of one or more units in the unit trust (in this section called the ``unitholding taxpayer's entitlement units'' ) held by each unitholding taxpayer;

(iv) each of the disposals occurred:

(A) after 28 January 1988 and before 1 July 1988; and

(B) during a year of income of the unit trust earlier than the year of income commencing on 1 July 1988;

(v) the unit trust was established, within the meaning of section 102R , before 20 September 1985;

(vi) if the unit trust had been established, within the meaning of section 102R , after 19 September 1985, the unit trust would have been a public trading trust, for the purposes of Division 6C of Part III , in relation to each year of income of the unit trust in which each of the disposals occurred; and

(b) both of the following conditions are satisfied in relation to a particular unitholding taxpayer:

(i) at least one of the unitholding taxpayer's entitlement units was acquired by the unitholding taxpayer before 20 September 1985;

(ii) the unitholding taxpayer has elected that this section is to apply in respect of the acquisition by the unitholding taxpayer of all the shares that were acquired by the unitholding taxpayer and in respect of which the conditions specified in paragraph (a) are satisfied.

160ZZPF(2)   [Provisions having effect]  

The following provisions have effect in relation to a particular unitholding taxpayer:

(a) if all the unitholding taxpayer's entitlement units were acquired by the unitholding taxpayer before 20 September 1985 - the unitholding taxpayer shall be taken, for the purposes of this Part, to have acquired the shares concerned before 20 September 1985;

(b) if:

(i) some, but not all, of the unitholding taxpayer's entitlement units were acquired by the unitholding taxpayer before 20 September 1985;

(ii) the unitholding taxpayer, in the notice of election, nominates, as pre-CGT shares, such of the shares acquired by the unitholding taxpayer as are specified in the notice; and

(iii) the number of shares nominated by the unitholding taxpayer does not exceed the number calculated in accordance with the formula:

Shares

×

Pre CGT units   Total units

where:

Shares is the number of shares acquired by the unitholding taxpayer;

Pre CGT units is the number of unitholding taxpayer's entitlement units acquired by the unitholding taxpayer before 20 September 1985; and

Total units is the number of unitholding taxpayer's entitlement units held by the unitholding taxpayer;

the unitholding taxpayer shall be taken, for the purposes of this Part, to have acquired the nominated shares before 20 September 1985.

160ZZPF(3)   [Election]  

An election by a unitholding taxpayer under subsection (1) shall be made by notice in writing given to the Commissioner on or before the date of lodgment of the return of income of the unitholding taxpayer for the year of income in which the acquisition of the shares concerned took place, or within such further period as the Commissioner allows.