Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1936 - SECT 121AC

Mutual affiliate company

             (1)  A mutual affiliate company is a company that satisfies the following conditions:

                     (a)  it is limited by guarantee;

                     (b)  it is not an insurance company;

                     (c)  at least 75% of the policyholders of a mutual insurance company are members of it;

                     (d)  it did not divide its profits among its members during the 10 years ending on 9 May 1995;

                     (e)  on a winding-up, its profits are not divisible among its members in their capacity as such.

             (2)  If the company is a mutual entity (within the meaning of the Corporations Act 2001 ) then, for the purposes of subsection (1), disregard the following:

                     (a)  any MCIs (within the meaning of that Act) issued by the company;

                     (b)  any dividends or profits paid or payable in respect of such MCIs;

                     (c)  any members of the company who are members by virtue of holding such MCIs.



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