Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS

Division 165 - Income tax consequences of changing ownership or control of a company

Subdivision 165-D - Tests for finding out whether the company has maintained the same owners

Rules affecting the operation of the tests

SECTION 165-205 Death of share owner

165-205(1)
If an individual beneficially owns *shares in a company when he or she dies, this section applies if and while the shares:

(a) are owned by the trustee of the deceased ' s estate; or

(b) are beneficially owned by someone who receives them as a beneficiary of the deceased ' s estate.

165-205(2)
For the purposes of a test:

(a) the *shares are taken to continue to be beneficially owned by the deceased; and

(b) as a result of being taken to continue to beneficially own the shares, the deceased is taken to continue:

(i) to have any rights to exercise, or to be able to control (whether directly, or indirectly through one or more interposed entities), any of the voting power in the company; and

(ii) to have any rights to receive for the deceased ' s own benefit (whether directly or *indirectly) any *dividends that the company may pay; and

(iii) to have any rights to receive for the deceased ' s own benefit (whether directly or indirectly) any distributions of capital of the company.

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