Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (NO. 5) 2000 NO. 43, 2000 - SCHEDULE 2

Income Tax Assessment Act 1936

1 At the end of section 139FA

(3)

This section does not apply to a share if section 139FAA applies to the share.

2 After section 139FA

139FAA Listed shares—market value where public offer

(1)

This section applies to a share in a company if:

(a)

the share is acquired within the period starting 7 days before and ending 7 days after the day on which shares are first acquired under a public offer of shares in the company; and

(b)

the following rights attached to the share are the same as those attached to the shares acquired under the public offer:

(i)

rights in respect of voting;

(ii)

rights in respect of dividends;

(iii)

rights in respect of distribution of share capital in consequence of a reduction of share capital;

(iv)

rights in respect of distribution of the property of the company in the event of the winding up of the company; and

(c)

there is at least one price at which shares were sold under the public offer that satisfies the following requirements:

(i)

1,000 Australian residents (other than residents who are employees of the company or who held shares in the company immediately before the offer was made) acquired shares at the price;

(ii)

the total cost of shares acquired by such Australian residents at the price was at least $1,000,000; and

(d)

the company has been a listed public company for at least 6 months immediately before the share is acquired.