INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 2A - Calculation of taxable income  

Subdivision B - Calculation of taxable income where disqualifying event occurs  

SECTION 50J   TRACING OF BENEFICIAL OWNERSHIP OF SHARES  

50J(1)   [Application of section]  

This section applies for the purposes of determining, for the purposes of section 50D or section 50H , whether a natural person was, at any time, the beneficial owner of shares in a company.

50J(2)   [Voting interest of company in another company]  

Where, at any time, whether before or after the commencement of this section, a person had, or has, a voting interest in a company and at that time that company had, or has, a voting interest in another company, that person shall be deemed to have had, or to have, at that time a voting interest in that other company (in addition to any other voting interest that that person may have had, or may have, at that time in that other company) that bears to the voting interest that the first-mentioned company had, or has, at that time in that other company the same proportion as the voting interest that that person had, or has, at that time in the first-mentioned company bears to the total of the voting interests that persons had, or have, at that time, apart from this subsection, in the first-mentioned company.

50J(3)   [Extent of voting interest]  

In ascertaining for the purposes of subsection (2) the extent of the voting interest that a company had, or has, at any time in another company, there shall be taken into account any voting interest that the first-mentioned company is to be deemed to have had, or to have, at that time in that other company by any other application or applications of that subsection.

50J(4)   [Dividend and capital interests]  

In addition to the operation of subsections (2) and (3) in relation to voting interests, those subsections have effect in relation to dividend interests and capital interests in like manner as they have effect in relation to voting interests.

50J(5)   [Meaning of voting dividend and capital interests]  

For the purposes of this section:


(a) a reference to a person having had, or having, at any time a voting interest in a company shall be read as a reference to the person having been, or being, at that time the beneficial owner of shares in the company that carried, or carry, at that time the right to exercise any of the voting power in the company and the extent of the voting interest shall be taken to have been, or to be, the fraction of the total voting power in the company the right to exercise which was, or is, carried by those shares;


(b) a reference to a person having had, or having, at any time a dividend interest in a company shall be read as a reference to the person having been, or being, at that time the beneficial owner of shares in the company that carried, or carry, at that time any right to receive dividends that might have been, or may be, paid by the company and the extent of the dividend interest shall be taken to have been, or to be, the fraction of any dividends that might have been, or may be, paid by the company that would have been, or would be, received in respect of those shares;


(c) a reference to a person having had, or having, at any time a capital interest in a company shall be read as a reference to the person having been, or being, at that time the beneficial owner of shares in the company that carried, or carry, at that time the right to receive any distribution of capital in the company in the event of the winding-up, or of a reduction in the capital, of the company and the extent of the capital interest shall be taken to have been, or to be, the fraction of any distribution of capital of the company in such an event that would have been, or would be, received in respect of those shares; and


(d) where at any time 2 or more persons jointly had, or have, a voting interest, a dividend interest or a capital interest in a company, each of those persons shall be taken to have had, or to have, at that time a separate voting interest, dividend interest or capital interest, as the case may be, in the company equal to his share in the first-mentioned voting interest, dividend interest or capital interest.

50J(6)   [Person deemed to be beneficial owner of shares]  

For the purposes of this section, section 50D and section 50H , where a person is deemed by this section to have had or to have, at any time, a voting interest, a dividend interest or a capital interest in a company, the person shall be deemed to have been or to be, at that time, the beneficial owner of shares carrying the right to exercise voting power in the company, the right to receive the whole or a part of any dividends that might be paid by the company or the right to receive the whole or a part of any distribution of capital of the company, as the case may be, and the extent of that right shall be deemed to be the same as the extent of the voting interest, the dividend interest or the capital interest, as the case may be.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.