Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 975.300

  (1)   A company's share capital account is:

  (a)   an account that the company keeps of its share capital; or

  (b)   any other account (whether or not called a share capital account) that satisfies the following conditions:

  (i)   the account was created on or after 1   July 1998;

  (ii)   the first amount credited to the account was an amount of share capital.

  (2)   If a company has more than one account covered by subsection   (1), the accounts are taken, for the purposes of this Act, to be a single account.

Note:   Because the accounts are taken to be a single account (the combined share capital account ), tainting of any of the accounts has the effect of tainting the combined share capital account.

  (3)   However, if a company's * share capital account is * tainted, that account is taken not to be a share capital account for the purposes this Act, other than:

  (a)   subsection   118 - 20(6); and

  (b)   Division   197; and

  (ba)   paragraph   202 - 45(e); and

  (c)   the definition of paid - up share capital in subsection   6(1) of the Income Tax Assessment Act 1936 ; and

  (d)   subsection   44(1B) of the Income Tax Assessment Act 1936 ; and

  (f)   subsection   159GZZZQ(5) of the Income Tax Assessment Act 1936 .

Table of sections

975 - 500   Wholly - owned groups

975 - 505   What is a 100% subsidiary?