Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 960.220

Meaning of trading

Shares in a listed public company

  (1)   There is a trading in * shares in a company if there is an issue, redemption or transfer of those shares, or any other dealing in those shares, but only if it changes the respective proportions in which all the registered holders of shares in the company:

  (a)   can exercise the voting power in the company; or

  (b)   have the right to receive, as registered holders (whether or not for their own benefit) any dividends that the company may pay; or

  (c)   have the right to receive, as registered holders (whether or not for their own benefit) any distribution of capital of the company.

Note:   A special rule applies in working out whether an asset has stopped being a pre - CGT asset: see section   149 - 10.

Units in a unit trust

  (2)   There is a trading in units in a unit trust if there is an issue, redemption or transfer of those units, or any other dealing in those units, but only if it changes the respective proportions in which all the registered holders of units in the trust hold (whether beneficially or not) interests in the trust income or trust capital.

Note:   A special rule applies in working out whether an asset has stopped being a pre - CGT asset: see section   149 - 10.


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