Income Tax Assessment Act 1997
SECTION 124-980 Exchange of membership interests in an MDO 124-980(1)
There is a roll-over if:
(a) an entity exchanges:
(i) an interest (the original interest ) in an *MDO (the original MDO ) as a member of the original MDO; for
(ii) a similar interest (the replacement interest ) in another MDO (the new MDO ) as a member of the new MDO; and
(b) both the original MDO and the new MDO are companies limited by guarantee; and
(c) the exchange is in consequence of a single *arrangement that satisfies subsection (3); and
(d) apart from the roll-over, the entity would make a *capital gain from a *CGT event happening in relation to its original interest; and
(e) the entity chooses to obtain the roll-over; and
(f) the entity acquired the original interest on or after 20 September 1985.
Note:
The entity can obtain only a partial roll-over if the capital proceeds for its original interest include something other than its replacement interest: see section 124-990 .
124-980(2)
In working out whether an original interest is exchanged for a similar interest, disregard a difference that consists only of a right to receive distributions of income or capital.
Conditions for arrangement
124-980(3)
The *arrangement must:
(a) result in the new *MDO becoming the sole *member of the original MDO; and
(b) be one in which participation was available on substantially the same terms for all of the holders of interests as members of the original MDO of a particular type.
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