History
S 124-450(4) amended by
No 168 of 2006
and No 41 of 2005.
S 124-450 repealed by No 133 of 2014, s 3 and Sch 1 item 10, applicable in relation to shares or units disposed of, redeemed or cancelled at or after 7.30 pm, by legal time in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 124-450 formerly read:
SECTION 124-450 Other requirements to be satisfied
124-450(1)
The company must own all the units in the unit trust just after
all
the exchanging members have *disposed of their units in the unit trust (the
completion time
).
124-450(2)
Just after the completion time,
each
exchanging member must own:
(a)
a whole number of *shares in the company; and
(b)
a percentage of the *shares in the company that were issued to all the exchanging members that is equal to the percentage of the units in the unit trust (that were *disposed of to the company) that the member owned.
124-450(3)
The ratio of:
•
the *market value of
each
exchanging member
'
s *shares in the company
to
the market value of the shares in the 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 units in the unit trust that were disposed of to the company
to
the market value of
all
the units that were disposed of to the company (worked out just before the first disposal).
Example:
There are 1,000 units in the A unit trust, all having the same rights. B Pty Ltd acquires all the units in A by issuing each unitholder in A 10 shares in itself for each 100 units they have in A. All shares in B have the same rights. Brian owned 300 units in A and received 30 shares in B in exchange.
124-450(4)
Either:
(a)
you are an Australian resident at the time you *disposed of your units in the unit trust; or
(b)
if you are a foreign resident at that time:
(i)
your units were *taxable Australian property just before that time; and
(ii)
your *shares in the company are taxable Australian property just after the completion time.
History
S 124-450(4) amended by
No 168 of 2006
, s 3 and Sch 4 item 55, 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 units have the *necessary connection with Australia.
S 124-450(4) amended by No 41 of 2005.
S 124-450 inserted by No 46 of 1998.
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