Income Tax Assessment Act 1997
View history note
Hide history noteShare and interest sale facilities
125-235(1)
An entity (the investor ) is treated as owning an *ownership interest (the roll-over interest ) in a *demerged entity at a time (the deeming time ), if:
(a) the investor owned an ownership interest in a company or trust that was the *head entity of a *demerger group; and
(b) a *demerger happens to the demerger group; and
(c) because:
(i) a *foreign law impedes the ability of a member of the demerger group to issue or transfer the roll-over interest to the investor; or
it is *arranged that the member will issue or transfer the roll-over interest to another entity (the facility ) under the demerger instead of to the investor; and
(ii) it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of a member of the demerger group to issue or transfer the roll-over interest to the investor;
(d) in accordance with that arrangement and as a result of the demerger, the facility:
(i) becomes the owner of the roll-over interest (which is a new or replacement interest in the demerged entity); and
(ii) owns the roll-over interest at the deeming time; and
(e) under the arrangement, the investor is entitled to receive from the facility:
(i) an amount equivalent to the *capital proceeds of any *CGT event that happens in relation to the roll-over interest (less expenses); or
(ii) if a CGT event happens in relation to the roll-over interest together with CGT events happening in relation to other ownership interests - an amount equivalent to the investor ' s proportion of the total capital proceeds of the CGT events (less expenses).
125-235(2)
The facility is treated as not owning the roll-over interest at the deeming time.
125-235(3)
This section applies for the purposes of:
(a) applying this Division in relation to the demerger; and
(b) item 2 of the table in subsection 115-30(1) , to the extent that it relates to a roll-over under this Division that involves the demerger.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
