INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 2 - Application  

SECTION 160WA   DEEMED DISPOSAL AND RE-ACQUISITION OF VALUELESS SHARES IN COMPANIES IN LIQUIDATION  

160WA(1)   [Deemed disposal and re-acquisition for nil consideration]  

For the purposes of this Part, if:

(a) a taxpayer owns a share in a company as at a particular time (in this subsection called the ``test time'' ) after 11 November 1991; and

(b) there is a liquidator of the company; and

(c) at or after the test time, the liquidator makes a written declaration that the liquidator has reasonable grounds to believe that:

(i) if the share belongs to a particular class of shares in the company - there is no likelihood that the relevant class of shareholders in the company as at the test time will receive any distributions in the course of winding up the company; or

(ii) in any other case - there is no likelihood that the shareholders in the company as at the test time will receive any distributions in the course of winding up the company; and

(d) the taxpayer elects that this section applies in relation to the taxpayer and in relation to the share;

the taxpayer is taken:

(e) to have disposed of the share at the time the declaration was made for no consideration; and

(f) to have immediately re-acquired the share for no consideration.

160WA(2)   [Election by taxpayer]  

An election by a taxpayer under subsection (1) must be made by written notice given to the Commissioner on or before the date of lodgment of the taxpayer's return of income for the later of the following years of income:

(a) the year of income in which the declaration was made;

(b) the year of income in which this section commenced;

or within such further period as the Commissioner allows.