INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 20 - Changes in majority underlying interests in assets  

Subdivision F - How interposed superannuation funds, approved deposit funds, special companies and government bodies may be treated  

SECTION 160ZZSS   WHEN FUND, SPECIAL COMPANY OR GOVERNMENT BODY IS TAKEN TO HAVE RIGHTS TO CAPITAL, DIVIDENDS OR OTHER INCOME  

160ZZSS(1)   [Application]  

A public company or a publicly traded unit trust may apply the provisions of this section in determining the natural persons who held underlying interests in an asset of the company or in an asset of the trust, as the case may be, at a test time or the base time if:

(a) a superannuation fund, approved deposit fund, special company or government body was interposed, at that time, between natural persons and the company or trust; and

(b) at that time, those persons had the right to receive for their own benefit, and indirectly through the fund, special company or government body (or through entities including it), a percentage (the relevant percentage ) of:

(i) any distributions of capital of the public company or publicly traded unit trust; or

(ii) any dividends that the public company may pay or any income that the publicly traded unit trust may distribute; and

(c) where a superannuation fund was interposed as mentioned in paragraph (a) - at the test time the fund was a complying superannuation fund or was a foreign superannuation fund; and

(d) where an approved deposit fund was interposed as mentioned in paragraph (a) - at the test time the fund was a complying approved deposit fund.

160ZZSS(2)   If fund, special company or government body has more than 50 members.  

If, at the test time or the base time, the fund, special company or government body had more than 50 members, the public company or the publicly traded unit trust may determine the natural persons who held underlying interests in the asset of the company or trust at that time as if the fund, special company or government body were a natural person who had the right to receive, for the person's own benefit, the relevant percentage of those distributions of capital, those dividends or that income of the public company or publicly traded unit trust.

160ZZSS(3)   If fund or special company has not more than 50 members.  

If, at the test time or the base time, the fund or special company did not have more than 50 members, the public company or the publicly traded unit trust may determine the natural persons who held underlying interests in the asset of the company or trust at that time as if each member were a natural person who had a right to receive, for the person's own benefit, an equal proportion of those distributions of capital, those dividends or that income.

160ZZSS(4)   Persons who actually had the right are taken not to have had the right.  

If the public company or the publicly traded unit trust applies subsection (2) or (3) in determining the natural persons who held underlying interests in an asset of the company or trust at a test time or the base time, those interests are to be determined as if, at that time, the natural persons who had the right to receive that percentage of those distributions of capital, those dividends or that income did not have that right (except as provided by subsection (3)).

160ZZSS(5)   Notional membership of government body.  

For the purposes of this section, a government body is taken to have more than 50 members.