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INCOME TAX ASSESSMENT ACT 1997 - SECT 316.255

General taxation consequences of issue of demutualisation assets etc.

  (1)   An amount of * ordinary income or * statutory income (other than a * net capital gain) of an entity covered by subsection   (2) is not assessable income and is not * exempt income if:

  (a)   the amount would otherwise be included in the ordinary income or statutory income of the entity only because a demutualisation asset (see section   316 - 110) was issued to the entity; or

  (b)   the amount is a payment made to the entity, under the demutualisation, in connection with:

  (i)   the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation (see paragraph   316 - 55(1)(b)); or

  (ii)   the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation; or

  (c)   the amount would otherwise be included in the ordinary income or statutory income of the entity only because a * share or a right to * acquire one or more shares was transferred to the entity by the trustee of a lost policy holders trust (see section   316 - 155); or

  (d)   the amount is a payment made to the entity from a lost policy holders trust in connection with:

  (i)   the variation or abrogation of rights attaching to or consisting of an interest affected by demutualisation; or

  (ii)   the conversion, cancellation, extinguishment or redemption of an interest affected by demutualisation.

  (2)   This subsection covers an entity that:

  (a)   is or has been a * member of the * friendly society; or

  (b)   is or has been insured through the friendly society or a health/life insurance subsidiary of the friendly society; or

  (c)   is issued with the demutualisation asset, or receives the payment, because of the death of a person covered by paragraph   (a) or (b); or

  (d)   is a beneficiary of a lost policy holders trust (see section   316 - 155).


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