Income Tax Assessment Act 1997

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 960 - General  

Subdivision 960-H - Abnormal trading in shares or units  

SECTION 960-220   Meaning of trading  
Shares in a listed public company

960-220(1)    
There is a trading in *shares in a company if there is an issue, redemption or transfer of those shares, or any other dealing in those shares, but only if it changes the respective proportions in which all the registered holders of shares in the company:

(a) can exercise the voting power in the company; or

(b) have the right to receive, as registered holders (whether or not for their own benefit) any dividends that the company may pay; or

(c) have the right to receive, as registered holders (whether or not for their own benefit) any distribution of capital of the company.

Note:

A special rule applies in working out whether an asset has stopped being a pre-CGT asset: see section 149-10 .

Units in a unit trust

960-220(2)    
There is a trading in units in a unit trust if there is an issue, redemption or transfer of those units, or any other dealing in those units, but only if it changes the respective proportions in which all the registered holders of units in the trust hold (whether beneficially or not) interests in the trust income or trust capital.

Note:

A special rule applies in working out whether an asset has stopped being a pre-CGT asset: see section 149-10 .