Tax Laws Amendment (2010 Measures No. 1) Act 2010 (56 of 2010)

Schedule 5   Consolidation

Part 20   Non-membership equity interests

Income Tax Assessment Act 1997

219   Subsection 995-1(1)

Insert:

non-membership equity interest : an interest in an entity is a non-membership equity interest in the entity at a time to the extent that it is not an accounting liability (within the meaning of subsection 705-70(1)) of the entity at that time, if:

(a) the interest is not a *membership interest in the entity at that time; and

(b) the interest is not a *debt interest in the entity at that time.

In determining the extent to which the interest is not an accounting liability at that time:

(c) treat each reference in subsection 705-70(1) to the joining entity as instead being a reference to the entity; and

(d) treat the reference in that subsection to the joining time as instead being a reference to that time.