Income Tax Assessment Act 1997
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Hide history noteSubject to subsection (2), this Division does not apply to the transferred amount if:
(a) the amount is transferred in connection with a demutualisation of a company; and
(b) Division 316 (about demutualisations of friendly society health and life insurers) applies in relation to the demutualisation; and
(c) the company (the issuing company ) to whose *share capital account the amount is transferred is either:
(i) the *friendly society described in that Division; or
(ii) the company that owns all the shares in the friendly society.
197-38(2)
Subsection (1) does not stop this Division from applying to so much, if any, of the transferred amount as exceeds the sum of the *cost bases of *shares in the issuing company that:
(a) are demutualisation assets (see section 316-110 ); and
(b) are issued to an entity covered by section 316-115 .
Note:
Section 316-115 identifies entities connected directly or indirectly with the friendly society and affected by the special cost base rules in section 316-105 .
197-38(3)
For the purposes of subsection (2), work out the *cost base of a *share on the day on which it is issued, taking account of section 316-105 .
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