Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.20

Share and interest sale facilities

  (1)   An entity (the investor ) is treated as owning an * ownership interest (the roll - over interest ) in a company or trust (the issuer ) at a time (the deeming time ), if:

  (a)   the investor owned an ownership interest (the original interest ) in a company or trust; and

  (b)   a transaction happened in relation to the original interest; and

  (c)   because:

  (i)   a * foreign law impedes the ability of the issuer to issue or transfer the roll - over interest to the investor; or

  (ii)   it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of the issuer to issue or transfer the roll - over interest to the investor;

    it is * arranged that the issuer will issue or transfer the roll - over interest to another entity (the facility ) under the transaction instead of to the investor; and

  (d)   in accordance with that arrangement and as a result of the transaction, the facility:

  (i)   becomes the owner of the roll - over interest; and

  (ii)   owns the roll - over interest at the deeming time; and

  (e)   under the arrangement, the investor is entitled to receive from the facility:

  (i)   an amount equivalent to the * capital proceeds of any * CGT event that happens in relation to the roll - over interest (less expenses); or

  (ii)   if a CGT event happens in relation to the roll - over interest together with CGT events happening in relation to other ownership interests--an amount equivalent to the investor's proportion of the total capital proceeds of the CGT events (less expenses).

  (2)   The facility is treated as not owning the roll - over interest at the deeming time.

  (3)   This section applies for the purposes of:

  (a)   applying one of the following provisions (the roll - over provision ) in relation to the transaction:

  (iii)   Subdivision   124 - I (Change of incorporation);

  (iv)   Subdivision   124 - N (Disposal of assets by a trust to a company);

  (v)   Subdivision   124 - Q (Exchange of stapled ownership interests for ownership interests in a unit trust);

  (vi)   Division   615 (Roll - overs for business restructures); and

  (b)   the following provisions, to the extent that they relate to a roll - over under the roll - over provision that involves the transaction:

  (i)   item   2 of the table in subsection   115 - 30(1);

  (ii)   sections   124 - 10 and 124 - 15.

Incorporated bodies

  (4)   Without limiting this section, it also has effect, in a case covered by subparagraph   (3)(a)(iii) (about Subdivision   124 - I), as if each reference in this section to an * ownership interest in a company or trust were a reference to:

  (a)   an interest in an incorporated body; and

  (b)   any rights relating to the body owned by the entity that owns that interest.

  (5)   This section applies, in a case covered by subparagraph   (3)(a)(iii) (about Subdivision   124 - I), in relation to rights as a * member of a company incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 in the same way as it applies in relation to * shares in a company.

Table of sections

When a roll - over is available

124 - 70   Events giving rise to a roll - over

124 - 75   Other requirements if you receive money

124 - 80   Other requirements if you receive an asset

The consequences of a roll - over being available

124 - 85   Consequences for receiving money

124 - 90   Consequences for receiving an asset

124 - 95   You receive both money and an asset