Income Tax Assessment Act 1936

SCHEDULE 2H - DEMUTUALISATION OF MUTUAL ENTITIES OTHER THAN INSURANCE COMPANIES AND HEALTH INSURERS

Division 326 - DEMUTUALISATION

Subdivision 326-F - Variation of amount taken to be paid for shares or an interest in shares by a member of a mutual entity who made a capital gain or capital loss from disposal of membership rights in another mutual entity

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SECTION 326-180 AMOUNT TAKEN TO BE PAID FOR ACQUISITION OF SHARES OR INTEREST BY MEMBER TO BE INCREASED BY CAPITAL GAIN OR REDUCED BY CAPITAL LOSS

326-180(1)
This section applies if:

(a) a post-CGT member of a mutual entity that has been demutualised acquired membership rights in the entity by the disposal of membership rights in another mutual entity; and

(b) the member made a capital gain or capital loss from the disposal of membership rights in the other mutual entity; and

(c) the member has acquired shares or an interest in shares in the demutualised entity or in a company that holds shares in the demutualised entity.

326-180(2)
If the member disposes of a demutualisation original share or a non-demutualisation bonus share, the amount paid for the acquisition of all the demutualisation original shares is taken to be increased by the amount of the capital gain or reduced by the amount of the capital loss, as the case may be.

326-180(3)
If subsection (2) does not apply, the amount that is taken, under Subdivision 326-D or 326-E , to have been paid by the member for the acquisition of the share or interest is taken to be increased by the proportionate part of the amount of the capital gain or reduced by the proportionate part of the amount of the capital loss, as the case may be.

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