Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 167.35

Fixing rights if impracticable to work out market values etc.

  (1)   Each remaining * share is treated at the test time as carrying such a percentage of the rights to receive * dividends, and capital distributions, from the company as is reasonable worked out:

  (a)   at the test time; and

  (b)   having regard to the purpose of the unsatisfied condition.

  (2)   In working out what is reasonable for subsection   (1), have regard to the following:

  (a)   the company's * constitution;

  (b)   any agreements between the company and either or both of the following:

  (i)   any or all of the shareholders in the company;

  (ii)   any or all of the * associates of a shareholder in the company;

  (c)   any statement by the company of its policy in paying * dividends or making capital distributions;

  (d)   the ability of an entity to control (whether directly, or indirectly through one or more interposed entities) how the company pays dividends or makes capital distributions;

  (e)   how the company has previously paid dividends or made capital distributions;

  (f)   whether all classes of * shares carry substantially the same rights to receive dividends and capital distributions;

  (g)   the principle that:

  (i)   a * tax loss or bad debt should only be deductible; and

  (ii)   a * net capital loss should only be applied;

    if a majority of the persons entitled to the benefits of dividend and capital distributions of the company is maintained.


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