Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 149 - When an asset stops being a pre-CGT asset  

Subdivision 149-F - How to treat a ``demutualised'' public entity  

SECTION 149-165   Members treated as having underlying interests in assets until demutualisation  

149-165(1)    
This section modifies the treatment of evidence that an entity gives the Commissioner under section 149-55 as to the *ultimate owners who had *underlying interests in the asset at a particular time if the entity:

(a) was:

(i) a *mutual insurance company; or

(ii) a *mutual affiliate company;

at the end of the *starting day (as determined under subsection 149-60(6) ); and

(b) has since stopped being a company of either of those kinds, but either:

(i) has continued in existence as a company covered by paragraph 149-50(1)(a) or (e) or a *publicly traded unit trust; or

(ii) has undergone a demutualisation in relation to which Division 316 (Demutualisation of friendly society health or life insurers) applied and has continued in existence as a company; and

(c) when it stopped being an entity of either of those kinds (the stopping time ), had more than 50 members.

149-165(2)    
The entity may require the Commissioner to treat the evidence on the assumption that an *ultimate owner who:

(a) immediately before the stopping time was a member of the entity; and

(b) immediately after the stopping time had an *underlying interest in the asset;

had the interest at all times from and including the end of the *starting day until immediately after the stopping time.