INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 20 - Changes in majority underlying interests in assets  

Subdivision G - Determination of underlying interests if mutual insurance organisation with more than 50 members ceases to be such an organisation but continues to be a public entity  

SECTION 160ZZST   MEMBERS OF FORMER MUTUAL INSURANCE ORGANISATION TAKEN TO HOLD UNDERLYING INTERESTS IN ASSETS SINCE BASE TIME  

160ZZST(1)   [Application]  

A public entity may apply the provisions of this section in determining the natural persons who held underlying interests in an asset of the entity at a test time or the base time if:

(a) the entity was a mutual insurance organisation at the base time; and

(b) the entity has, whether before or after the commencement of this section, ceased to be such an organisation but has continued in existence as a public company or a publicly traded unit trust; and

(c) at the time of the cessation (the cessation time ) the entity had more than 50 members.

160ZZST(2)   [When deemed to hold interest]  

A natural person who:

(a) immediately before the cessation time was a member of the entity; and

(b) immediately after the cessation time held:

(i) an underlying interest in an asset of the entity; or

(ii) an underlying interest, through the entity, in an asset of another entity that was a public entity;

is taken, for the purposes of the application of this Division in determining, after the cessation time, the natural persons who held underlying interests in assets of the entity or the other entity at a test time or the base time, to have held the interest at all times from and including the base time until immediately after the cessation time.