INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 20 - Changes in majority underlying interests in assets  

Subdivision E - How holdings of shares or units of less than 1% in certain public entities may be treated  

SECTION 160ZZSL   HOLDINGS OF LESS THAT 1% IN INTERPOSED PUBLIC COMPANY OR INTERPOSED PUBLICLY TRADED UNIT TRUST  

160ZZSL(1)   [Subdivision modifies determination]  

This Subdivision also modifies the way in which the head company or the head trust may determine under subsection 160ZZSA(2) the natural persons who, at a test time or the base time, held underlying interests in an asset of the head company or of the head trust if at that time another entity (the interposed entity ) that is a public company or a publicly traded unit trust met the conditions in subsections (2) and (3).

160ZZSL(2)   [Interposition]  

The interposed entity must have been interposed between the head company or head trust and natural persons who held indirectly beneficial interests in the asset or in any income that may be derived from the asset.

160ZZSL(3)   [Holdings of less than 1%]  

There must have been:

(a) if the interposed entity was a public company:

(i) capital shareholdings of less than 1%; or

(ii) dividend shareholdings of less than 1%;

in the interposed public company; or

(b) if the interposed entity was a publicly traded unit trust:

(i) capital unitholdings of less than 1%; or

(ii) income unitholdings of less than 1%;

in the interposed publicly traded unit trust.