Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014 (110 of 2014)

Schedule 5  

Part 4   Other amendments of principal Acts

Income Tax Assessment Act 1997

106   Section 165-205

Repeal the section, substitute:

165-205 Death of share owner

(1) If an individual beneficially owns *shares in a company when he or she dies, this section applies if and while the shares:

(a) are owned by the trustee of the deceased’s estate; or

(b) are beneficially owned by someone who receives them as a beneficiary of the deceased’s estate.

(2) For the purposes of a test:

(a) the *shares are taken to continue to be beneficially owned by the deceased; and

(b) as a result of being taken to continue to beneficially own the shares, the deceased is taken to continue:

(i) to have any rights to exercise, or to be able to control (whether directly, or indirectly through one or more interposed entities), any of the voting power in the company; and

(ii) to have any rights to receive for the deceased’s own benefit (whether directly or *indirectly) any *dividends that the company may pay; and

(iii) to have any rights to receive for the deceased’s own benefit (whether directly or indirectly) any distributions of capital of the company.