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

View history reference

View history note

Operative provisions

SECTION 167-35 Fixing rights if impracticable to work out market values etc.

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167-35(1)
Each remaining *share is treated at the test time as carrying such a percentage of the rights to receive *dividends, and capital distributions, from the company as is reasonable worked out:

(a) at the test time; and

(b) having regard to the purpose of the unsatisfied condition.

167-35(2)
In working out what is reasonable for subsection (1), have regard to the following:

(a) the company ' s *constitution;

(b) any agreements between the company and either or both of the following:

(i) any or all of the shareholders in the company;

(ii) any or all of the *associates of a shareholder in the company;

(c) any statement by the company of its policy in paying *dividends or making capital distributions;

(d) the ability of an entity to control (whether directly, or indirectly through one or more interposed entities) how the company pays dividends or makes capital distributions;

(e) how the company has previously paid dividends or made capital distributions;

(f) whether all classes of *shares carry substantially the same rights to receive dividends and capital distributions;

(g) the principle that:

(i) a *tax loss or bad debt should only be deductible; and

(ii) a *net capital loss should only be applied;

if a majority of the persons entitled to the benefits of dividend and capital distributions of the company is maintained.

View history note

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