Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 (70 of 2015)

Schedule 3   Offshore banking units

Part 1   Trading in subsidiaries

Income Tax Assessment Act 1936

2   After subsection 121D(4)

Insert:

(4A) However, paragraph (1)(c) does not apply to a trading activity done by an OBU if:

(a) the thing traded in affected the OBU's total participation interest (within the meaning of the Income Tax Assessment Act 1997) in another entity; and

(b) just before the trading activity:

(i) the OBU's total participation interest in the other entity was at least 10%; or

(ii) any of the thing traded in was held by the OBU, and was not recorded in the OBU's accounting records as held for trading in accordance with accounting standards (within the meaning of that Act).

(4B) For the purposes of subsection (4A), disregard rights on winding-up.