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 165-208   Companies in liquidation etc.  

165-208(1)    
For the purposes of a primary test or an alternative test, an entity is not prevented from:

(a) beneficially owning *shares in a company; or

(b) having the right to exercise, controlling, or being able to control, voting power in a company; or

(c) having the right to receive any *dividends that a company may pay; or

(d) having the right to receive any distribution of capital of a company;

merely because:

(e) the company is or becomes:

(i) a Chapter 5 body corporate within the meaning of the Corporations Act 2001 ; or

(ii) an entity with a similar status under a *foreign law to a Chapter 5 body corporate; or

(f) either:

(i) a provisional liquidator is appointed to the company under section 472 of the Corporations Act 2001 ; or

(ii) a person with a similar status under a foreign law to a provisional liquidator is appointed to the company.

Note 1:

For a primary test, see subsections 165-150(1) , 165-155(1) and 165-160(1) .

Note 2:

For an alternative test, see subsections 165-150(2) , 165-155(2) and 165-160(2) .

165-208(2)    
For the purposes of a primary test or an alternative test, a company (the stakeholding company ) is not prevented from:

(a) beneficially owning *shares in another company, or any other interest in another entity; or

(b) having the right to exercise, controlling, or being able to control, voting power in another company or any other entity; or

(c) having the right to receive any *dividends that another company or any other entity may pay; or

(d) having the right to receive any distribution of capital of another company or of any other entity;

merely because:

(e) the stakeholding company is or becomes:

(i) a Chapter 5 body corporate within the meaning of the Corporations Act 2001 ; or

(ii) an entity with a similar status under a *foreign law to a Chapter 5 body corporate; or

(f) either:

(i) a provisional liquidator is appointed to the stakeholding company under section 472 of the Corporations Act 2001 ; or

(ii) a person with a similar status under a foreign law to a provisional liquidator is appointed to the stakeholding company.