New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 2   Consolidation: beneficial ownership

Income Tax Assessment Act 1997

1   After section 703-30

Insert:

703-33 Transfer time for sale of shares in company

(1) This section applies if:

(a) under a contract:

(i) a person (the seller ) stops being entitled to be registered as the holder of a *share in a company at a time (the transfer time ); and

(ii) another person (the buyer ) becomes entitled to be registered as the holder of the share in the company at the transfer time; and

(b) as a result of the contract, the seller stops being the beneficial owner of the share, and the buyer becomes the beneficial owner of the share; and

(c) the seller and the buyer dealt with each other at *arm's length in relation to the contract; and

(d) the seller and the buyer were not *associates of one another at any time during the period:

(i) starting when the contract was entered into; and

(ii) ending at the transfer time.

(2) For the purposes of subsection 703-30(1):

(a) the seller is taken to have stopped being the beneficial owner of the share at the transfer time; and

(b) the buyer is taken to have become the beneficial owner of the share at the transfer time.