Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 124ZR

  (1)   This section applies to shares in a company that a taxpayer holds when the company ceases to be a PDF.

  (2)   For the purposes of this Act (except Parts   3 - 1 and 3 - 3 (about CGT) of the Income Tax Assessment Act 1997 ), the taxpayer is taken:

  (a)   to have sold the shares immediately before the company ceased to be a PDF; and

  (b)   to have rebought the shares immediately after the company so ceased;

for a consideration equal to the market value of the shares immediately after the company so ceased.

  (3)   Parts   3 - 1 and 3 - 3 (about CGT) of the Income Tax Assessment Act 1997 apply as if the taxpayer:

  (a)   had disposed of the CGT assets constituted by the shares, and had done so immediately before the company ceased to be a PDF; and

  (b)   had re - acquired those assets immediately afterwards;

for an amount equal to the shares' market value immediately after the company so ceased.