Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 (147 of 2005)

Schedule 1   Loss recoupment rules for companies etc.

Income Tax Assessment Act 1997

71   After section 165-200

Insert:

165-202 Shares held by government entities and charities etc.

(1) For the purposes of a test, *shares that are beneficially owned by each of the following entities are taken to be beneficially owned instead by a person (who is not a company):

(a) the Commonwealth, a State or a Territory;

(b) a municipal corporation;

(c) a local governing body;

(d) the government of a foreign country, or of part of a foreign country;

(e) a company, established under a law, in which no person has a *membership interest;

(f) a *non-profit company;

(g) a charitable institution, a charitable fund or any other kind of charitable body (other than such an institution, fund or body that is a trust).

(2) For the purposes of a test, *shares that are beneficially owned through a charitable institution, a charitable fund, or any other kind of charitable body, that is a trust are taken to be beneficially owned instead by a person (who is neither a company nor a trustee).

165-203 Companies where no shares have been issued

For the purposes of a test, if no *shares have been issued in a company, each *membership interest in the company is taken to be a share in the company.