INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3A - Net capital gain or net capital loss of company in respect of year of income in which ownership or control of the company changed  

When a company must work out its net capital gain or net capital loss under this Division  

SECTION 160ZNC   WHO HAS MORE THAN A 50% STAKE IN THE COMPANY DURING A PERIOD  

160ZNC(1)   [When more than 50% stake is held]  

If:

(a) there are persons who had more than 50% of the voting power in the company during the whole of a period (the ownership test period ) consisting of the year of income or a part of it; and

(b) there are persons who had rights to more than 50% of the company's dividends during the whole of the ownership test period; and

(c) there are persons who had rights to more than 50% of the company's capital distributions during the whole of the ownership test period;

those persons had more than a 50% stake in the company during the ownership test period.

160ZNC(2)   [Does condition apply]  

To work out whether a condition in subsection (1) was satisfied during the ownership test period, apply the primary test for that condition unless subsection (3) requires the alternative test to be applied.

Note:

For the primary tests: see subsections 160ZNH(1), 160ZNI(1) and 160ZNJ(1).

160ZNC(3)   [Alternative test]  

Apply the alternative test for that condition if one or more other companies beneficially owned shares, or interests in shares, in the company at any time during the ownership test period.

Note:

For the alternative tests: see subsections 160ZNH(2), 160ZNI(2) and 160ZNJ(2).