Income Tax Assessment Act 1936
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Hide history noteThis Division applies to the demutualisation of a mutual entity referred to in section 326-10 if, and only if:
(a) where the demutualisation resolution day was 14 March 2002 or was or is a later day - the members of the entity have passed a resolution, in accordance with the entity ' s constitution, that this Division is to apply to the demutualisation; and
(b) the entity was a resident immediately before the demutualisation resolution day; and
(c) the demutualisation has been or is implemented as mentioned in section 326-40 ; and
(d) the continuity of beneficial interest test in section 326-60 is satisfied in relation to the demutualisation; and
(e) the demutualisation of the entity was or is completed on or after 12 May 1998.
326-5(2)
For the purposes of paragraph (1)(e), the demutualisation of an entity is taken to have been or to be completed:
(a) if the demutualisation is implemented in accordance with the direct method or the distributing trust method of demutualisation - on the day on which all the shares in the company that the entity became or becomes that were or are to be issued in connection with the demutualisation have been issued; or
(b) if the demutualisation is implemented in accordance with the holding company method of demutualisation - on the day on which all the shares in the holding company that were or are to be issued in connection with the demutualisation have been issued; or
(c) if the demutualisation is implemented in accordance with the combined direct and holding company method of demutualisation - on the later of the following days:
(i) the day on which all the shares in the company that the entity became or becomes that were or are to be issued in connection with the demutualisation have been issued;
(ii) the day on which all the shares in the holding company that were or are to be issued in connection with the demutualisation have been issued.
326-5(3)
If this Division applies to the demutualisation of a mutual entity as mentioned in subsection (1), Subdivisions 326-C to 326-N provide for modifications of this Act and the Income Tax Assessment Act 1997 as those Acts have effect in respect of the entity.
326-5(4)
For the purposes of this Division, the giving of consideration (other than the payment of an amount) for the acquisition of shares or an interest in shares is taken to constitute the payment of an amount equal to the value of the consideration.
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