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  

Rules affecting the operation of the tests  

SECTION 160ZNM   ARRANGEMENTS AFFECTING BENEFICIAL OWNERSHIP OF SHARES  

160ZNM(1)   [Commissioner may treat]  

For the purposes of a test, the Commissioner may treat a person as not having beneficially owned particular shares at a particular time during the ownership test period if the conditions in subsections (2) and (3) are met.

160ZNM(2)   [Conditions to be met]  

Before or during the year of income an arrangement must have been entered into that in any way (directly or indirectly) related to, affected, or depended for its operation on:

(a) the beneficial interest in the shares, or the value of that beneficial interest; or

(b) a right carried by, or relating to, the shares; or

(c) the exercise of such a right.

160ZNM(3)   [Condition of purpose]  

The arrangement must also have been entered into for the purpose, or for purposes including the purpose, of eliminating or reducing a liability of an entity to pay income tax for a year of income.