INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3B - Tests for finding out whether the company has maintained the same owners  

The primary and alternative tests  

SECTION 160ZNI   WHO HAS RIGHTS TO MORE THAN 50% OF THE COMPANY'S DIVIDENDS DURING A PERIOD  

160ZNI(1)   The primary test.  

Applying the primary test: if there are persons who, at all times during the ownership test period, beneficially own (between them) shares that carry (between them) the right to receive more than 50% of any dividends that the company may pay, those persons have rights to more than 50% of the company's dividends during that period.

160ZNI(2)   The alternative test.  

Applying the alternative test: if it is the case, or it is reasonable to assume, that there are persons (none of them companies) who, at all times during the ownership test period, have between them the right to receive for their own benefit (whether directly, or indirectly through one or more interposed entities), more than 50% of any dividends that the company may pay, those persons have rights to more than 50% of the company's dividends during that period.