Income Tax Assessment (1997 Act) Regulations 2021
CHAPTER 6
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THE DICTIONARY
PART 6-1
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CONCEPTS AND TOPICS
Division 974
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Debt and equity interests
Subdivision 974-F
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Related concepts
SECTION 974-135.02
974-135.02
REDEEMABLE PREFERENCE SHARES
For the purposes of paragraph 974-135(8)(a) of the Act, an obligation to redeem or buy back a preference share in relation to a company is not a contingent obligation merely because a requirement exists, under a law, to the effect that: (a) the redemption or buy back must not prejudice the company ' s ability to pay its creditors; or (b) the redemption or buy back must not cause the company ' s remaining assets to become insufficient to pay any of the company ' s debts for which provision for payment has not otherwise been made.
For the purposes of paragraph 974-135(8)(a) of the Act, an obligation to redeem or buy back a preference share in relation to a company is not a contingent obligation merely because a requirement exists, under a law, to the effect that: (a) the redemption or buy back must not prejudice the company ' s ability to pay its creditors; or (b) the redemption or buy back must not cause the company ' s remaining assets to become insufficient to pay any of the company ' s debts for which provision for payment has not otherwise been made.
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