INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 20 - Changes in majority underlying interests in assets  

Subdivision C - Provisions applying to public entities  

SECTION 160ZZSC   IF NO CONTINUITY OF MAJORITY UNDERLYING INTERESTS FOUND AT FIRST TEST TIME  

160ZZSC(1)   Time of, and consideration for, acquisition of asset.  

If a determination by a public entity under subsection 160ZZSA(2) in relation to the first test time shows that majority underlying interests in an asset of the entity at that test time were not held by natural persons who held majority underlying interests in the asset at the base time, the asset is taken for the purposes of this Part:

(a) to have been acquired by the entity at the time applicable under this section; and

(b) to have been so acquired for a consideration equal to the market value of the asset at that time.

160ZZSC(2)   Commissioner may accept that the same natural persons held majority underlying interests in an asset at the base time and the first test time.  

A determination referred to in subsection (1) is taken not to show that majority underlying interests in an asset of a public entity at the first test time were not held by natural persons who held majority underlying interests in the asset at the base time if the Commissioner is satisfied, or considers it reasonable to assume, that majority underlying interests in the asset at that test time were held by natural persons who held majority underlying interests in the asset at the base time.

160ZZSC(3)   If no requirement to test before 20 January 1997.  

If the entity was not required before 20 January 1997, under a ruling given by the Commissioner that was made available to the public, to determine whether, at a time after the base time and before the first test time, majority underlying interests in the asset were held by natural persons who held majority underlying interests in the asset at the base time, the asset is taken to have been acquired by the entity on 20 January 1997.

160ZZSC(4)   If requirement to test before 20 January 1997.  

If the entity was required before 20 January 1997, under a ruling given by the Commissioner that was made available to the public, to determine whether, at a time (the previous determination time ) after the base time and before the first test time, majority underlying interests in the asset were held by natural persons who held majority underlying interests in the asset at the base time, the asset is taken to have been acquired by the entity on:

(a) the earliest day in respect of which:

(i) the entity was required under the ruling to determine whether majority underlying interests in the asset were held by natural persons who held majority underlying interests in the asset at the base time; and

(ii) the entity is unable to show that majority underlying interests were so held; and

(b) if there is no day applicable under paragraph (a) - 20 January 1997.