Income Tax Assessment Act 1997
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Hide history noteSECTION 115-290 Meaning of listed investment company 115-290(1)
A listed investment company is a company: (a) that is an Australian resident; and (b) *shares in which are listed for quotation on the official list of ASX Limited or an *approved stock exchange; and (c) at least 90% of the *market value of whose *CGT assets consists of investments permitted by subsection (4) .
115-290(2)
A company is also a listed investment company if: (a) it is a 100% subsidiary of a company that is a *listed investment company because of subsection (1) ; and (b) the subsidiary would be a listed investment company because of subsection (1) if it were able to comply with paragraph (1)(b) .
115-290(3)
This Subdivision applies to a company that does not comply with paragraph (1)(c) as if it did comply if the failure: (a) was of a temporary nature only; and (b) was caused by circumstances outside its control.
115-290(4)
The permitted investments are: (a) *shares, units, options, rights or similar interests to the extent permitted by subsections (5) , (6) , (7) and (8) ; or (b) financial instruments (such as loans, debts, debentures, bonds, promissory notes, futures contracts, forward contracts, currency swap contracts and a right or option in respect of a share, security, loan or contract); or (c) an asset whose main use by the company in the course of carrying on its *business is to *derive interest, an annuity, rent, royalties or foreign exchange gains unless:
(i) the asset is an intangible asset and has been substantially developed, altered or improved by the company so that its *market value has been substantially enhanced; or
(d) goodwill.
(ii) its main use for deriving rent was only temporary; or
115-290(5)
The company can own a *100% subsidiary if the subsidiary is a listed investment company because of subsection (2) .
115-290(6)
The company can own (directly or indirectly) any percentage of another *listed investment company that is not the company's *100% subsidiary.
115-290(7)
Otherwise, the company cannot own (directly or indirectly) more than 10% of another company or trust.
115-290(8)
In working out whether a company indirectly owns any part of another company or trust: (a) disregard any ownership it has indirectly through a *listed public company or a *publicly traded unit trust; and (b) if the company owns not more than 50% of another *listed investment company - disregard any ownership it has indirectly through the other company.
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