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

73   At the end of Subdivision 165-D

Add:

165-208 Companies in liquidation etc.

(1) For the purposes of a primary test or an alternative test, an entity is not prevented from:

(a) beneficially owning *shares in a company; or

(b) having the right to exercise, controlling, or being able to control, voting power in a company; or

(c) having the right to receive any *dividends that a company may pay; or

(d) having the right to receive any distribution of capital of a company;

merely because:

(e) the company is or becomes:

(i) an externally-administered body corporate within the meaning of the Corporations Act 2001; or

(ii) an entity with a similar status under a *foreign law to an externally-administered body corporate; or

(f) either:

(i) a provisional liquidator is appointed to the company under section 472 of the Corporations Act 2001; or

(ii) a person with a similar status under a foreign law to a provisional liquidator is appointed to the company.

Note 1: For a primary test, see subsections 165-150(1), 165-155(1) and 165-160(1).

Note 2: For an alternative test, see subsections 165-150(2), 165-155(2) and 165-160(2).

(2) For the purposes of a primary test or an alternative test, a company (the stakeholding company ) is not prevented from:

(a) beneficially owning *shares in another company, or any other interest in another entity; or

(b) having the right to exercise, controlling, or being able to control, voting power in another company or any other entity; or

(c) having the right to receive any *dividends that another company or any other entity may pay; or

(d) having the right to receive any distribution of capital of another company or of any other entity;

merely because:

(e) the stakeholding company is or becomes:

(i) an externally-administered body corporate within the meaning of the Corporations Act 2001; or

(ii) an entity with a similar status under a *foreign law to an externally-administered body corporate; or

(f) either:

(i) a provisional liquidator is appointed to the stakeholding company under section 472 of the Corporations Act 2001; or

(ii) a person with a similar status under a foreign law to a provisional liquidator is appointed to the stakeholding company.

165-209 Dual listed companies

Section 165-150 does not apply to *shares that are *dual listed company voting shares.