Explanatory Memorandum
(Circulated by the Treasurer, the Hon. B.M. Snedden, Q.C., M.P.)Introductory Note
This Bill proposes an amendment to the Income Tax Assessment Act 1936-1972 (referred to in this memorandum as the "Principal Act") which will have the effect that otherwise taxable profits or deductible losses made by a person (not including a company) on the sale of shares will not be taken into account for income tax purposes if specified conditions are satisfied. Broadly stated, these conditions are
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- The shares in question were listed on a stock exchange at the time of acquisition by the person, or within three months afterwards.
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- The person had not acquired the shares as an incident of a business carried on by him and had not formally notified the Commissioner of Taxation that they had been acquired by him for the purpose of profit-making by sale.
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- The person had continued to be the owner of the shares for a period of eighteen months or more.
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- The shares were acquired by the person on or after 12 April 1972.
The clauses of the Bill are explained in the notes that follow.
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