Income Tax Assessment Act 1997
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Hide history noteSECTION 316-110 Demutualisation assets 316-110(1)
This section covers a *CGT asset that:
(a) is:
(i) a *share in the *friendly society; or
(ii) a right to *acquire a share in the friendly society; or
(iii) a share in an entity that owns all of the shares in the friendly society; or
(iv) a right to acquire a share in an entity mentioned in subparagraph (iii); and
(b) is issued under the demutualisation; and
(c) is issued in connection with:
(i) the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation (see paragraph 316-55(1)(b) ); or
(ii) the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation.
Exclusion for rights with an exercise price
316-110(2)
Despite subsection (1), this section does not cover a right to *acquire a *share in an entity if the holder of the right must pay an amount to exercise the right.
Exclusion where assets not issued simultaneously
316-110(3)
Despite subsection (1), a *CGT asset is not covered by this section unless all of the CGT assets covered by subsection (1) for the demutualisation are issued:
(a) at the same time; and
(b) to entities that are covered by section 316-115 .
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