Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS

Division 167 - Companies whose shares carry unequal rights to dividends, capital distributions or voting power

History

Div 167 inserted by No 130 of 2015, s 3 and Sch 4 item 1, effective 17 September 2015. No 130 of 2015, s 3 and Sch 4 item 53 contains the following application provision:

167-1 Application of provisions
167-1(1)
Division 167 of the Income Tax Assessment Act 1997 applies:

(a) to any tax loss that is incurred in an income year commencing on or after 1 July 2002; and

(b) to any net capital loss that is made in an income year commencing on or after 1 July 2002; and

(c) to any deduction in respect of a bad debt that is claimed in an income year commencing on or after 1 July 2002; and

(d) in determining whether any changeover time or alteration time occurred on or after 1 July 2002.

167-1(2)
Division 167 of the Income Tax Assessment Act 1997 also applies:

(a) to any tax loss of a company:

(i) that is incurred in an income year commencing on or before 30 June 2002; and

(ii) that could have been deducted, in accordance with Divisions 165 and 166 of that Act as in force at that time, in the first income year commencing after 30 June 2002 if the deduction had not been limited by the company ' s income for that income year; and

(b) to any net capital loss of a company:

(i) that is made in an income year commencing on or before 30 June 2002; and

(ii) that could have been applied, in accordance with Divisions 165 and 166 of that Act as in force at that time, in the first income year commencing after 30 June 2002 if the application of the loss had not been limited by the company ' s capital gains for that income year.

Subdivision 167-A - Rights to dividends or capital distributions

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Operative provisions

SECTION 167-10 When this Subdivision applies

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When this Subdivision applies

167-10(1)
This Subdivision applies in relation to a company if:

(a) as described in the following table, a condition (the unsatisfied condition ) cannot be worked out for the company for a particular period (the test period ); and

(b) at one or more times during the test period:

(i) the company; or

(ii) a company that has a *shareholding interest in it;

(an unequally structured company ) has an *unequal share structure.

Conditions that can be reconsidered under this Subdivision
Item	Column 1 Each of the following provisions contains a condition:	Column 2 that cannot be worked out for:
1	(a)	subsection 165-12(3) or (4) ;	a period that is all or part of the period to which that provision relates
	(b)	paragraph 165-37(1)(b) or (c);
	(c)	subsection 165-123(3) or (4) ;
	(d)	paragraph 175-10(3)(b) or (c), 175-45(3)(b) or (c) or 175-85(3)(b) or (c);
	(e)	subparagraph (b)(ii) or (iii) of the definition of *eligible Division 166 company* in subsection 995-1(1)

Note:

Each of these conditions is about rights to the company ' s dividends or capital distributions.

167-10(2)
This Subdivision also applies in relation to a company if:

(a) as described in the following table, a condition (the unsatisfied condition ) cannot be worked out for the company for a particular time (the test time ); and

(b) at the test time, the company, or a company that has a *shareholding interest in it, (an unequally structured company ) has an *unequal share structure.

Conditions that can be reconsidered under this Subdivision
Item	Column 1 Each of the following provisions contains a condition:	Column 2 that cannot be worked out for:
1	(a)	paragraph 165-115C(1)(b) or (c) or 165-115L(1)(b) or (c);	a time that is the time, or one of the times, to which that provision relates
	(b)	subparagraph 165-115X(1)(b)(ii) or (iii);
	(c)	paragraph 165-115Z(1)(b) or (c);
	(d)	subsection 166-145(3) or (4) ;
	(e)	subparagraph 166-175(1)(e)(ii) or (iii);
	(f)	paragraph 166-225(1)(b) or (c);
	(g)	subparagraph 166-230(1)(a)(ii) or (iii);
	(h)	paragraph 166-240(1)(b) or (c);
	(i)	subparagraph 166-255(1)(e)(ii) or (iii) or 166-260(1)(e)(ii) or (iii);
	(j)	paragraph 166-260(3)(b) or (c) or 166-270(2)(c) ;
	(k)	paragraph 170-260(3)(b) or (c) or 170-265(2)(b) or (c)

Note 1:

Each of these conditions is about rights to the company ' s dividends or capital distributions.

Note 2:

If a condition cannot be worked out for several of the times to which the provision relates, apply this Subdivision separately for each of those times.

Meaning of unequal share structure

167-10(3)
A company has an unequal share structure at a particular time if, at that time:

(a) the company ' s *shares do not all carry the same rights to *dividends, or capital distributions, of the company; or

(b) some or all of the company ' s shares carry discretionary rights to dividends, or capital distributions, of the company; or

(c) the company is a *co-operative company that has *on issue one or more interests (other than shares) in the company ' s capital.

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