S 124-365 repealed by No 133 of 2014, s 3 and Sch 1 item 10, applicable in relation to shares or units disposed of, redeemed or cancelled at or after 7.30 pm, by legal time in the Australian Capital Territory, on 10 May 2011. S 124-365 formerly read:
SECTION 124-365 Other requirements to be satisfied
124-365(1)
The interposed company must own all the *shares in the original company just after
all
the exchanging members have *disposed of their shares in the original company (the
completion time
).
124-365(2)
Just after the completion time,
each
exchanging member must own:
(a)
a whole number of *shares in the interposed company; and
(b)
a percentage of the *shares in the interposed company that were issued to
all
the exchanging members that is equal to the percentage of the shares in the original company (that were *disposed of to the interposed company) that the member owned.
124-365(3)
The ratio of:
•
the *market value of
each
exchanging member
'
s *shares in the interposed company
to
the market value of the shares in the interposed company issued to
all
the exchanging members (worked out just after the completion time);
must equal the ratio of:
•
the market value of that member
'
s shares in the original company that were *disposed of to the interposed company
to
the market value of
all
the shares in the original company that were disposed of to the interposed company (worked out just before the first disposal).
Example:
There are 100 shares in A Pty Ltd (the original company), all having the same rights. B Pty Ltd (the interposed company) acquires all the shares in A by issuing each shareholder in A 10 shares in itself for each share they have in A. All shares in B have the same rights. Bill owned 15 shares in A and received 150 shares in B in exchange.
124-365(4)
Either:
(a)
you are an Australian resident at the time you *disposed of your *shares in the original company; or
(b)
if you are a foreign resident at that time:
(i)
your shares in the original company were *taxable Australian property just before that time; and
(ii)
your shares in the interposed company are taxable Australian property just after the completion time.
S 124-365(4) amended by
No 168 of 2006
, s 3 and Sch 4 item 52, by substituting para (b), applicable to CGT events that happen on or after 12 December 2006. Para (b) formerly read:
(b)
if you are a foreign resident at that time
-
your *shares in the original company have the *necessary connection with Australia.
S 124-365(4) amended by No 41 of 2005.
S 124-365 inserted by No 46 of 1998.
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