Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (NO. 7) 1999 NO. 117, 1999 - SCHEDULE 2

Income Tax (Transitional Provisions) Act 1997

1 Division 960 (before Subdivision 960-M)

Subdivision 960-E—Entities

This Subdivision has effect for the purposes of the Income Tax Assessment Act 1936 , the Income Tax Assessment Act 1997 , the Taxation Administration Act 1953 and this Act.

(1)

This Subdivision applies to an entity if, and only if:

(a)

the entity is a managed investment scheme for the purposes of the Corporations Law; and

(b)

the scheme has been or is registered by the Australian Securities and Investments Commission under section 601EB of the Corporations Law; and

(c)

the entity was a managed investment scheme as mentioned in paragraph (a) at all times from the commencement of 1 July 1998 until the registration of the scheme as mentioned in paragraph (b); and

(d)

the entity was the same kind of entity immediately before, and immediately after, the scheme was so registered; and

(e)

changes to the scheme that were necessary to be made to enable the scheme to be registered as mentioned in paragraph (b) were made during the period beginning on 1 July 1998 and ending on 30 June 2000 (the transition period ); and

(f)

the membership of the scheme did not alter as a result of the changes; and

(g)

where any other changes were or are made to the scheme during the transition period:

(i)

the other changes were or are made only for the purpose of improving the administration or operation of the scheme; and

(ii)

there were no increases in the values of the interests of any members of the scheme as a result of the other changes or, if there were any such increases, they applied proportionately to the values of the interests of all the members of the scheme; and

(iii)

no reductions in the values of the interests of any members of the scheme occurred as a result of the other changes; and

(iv)

the membership of the scheme did not alter as a result of the other changes.

(2)

If this Subdivision applies to an entity under subsection (1), it also applies to a member of the entity, in relation to the member's interests in the entity, if, and only if, the member was a member:

(a)

immediately before the changes referred to in subsection (1) were made or, if the changes were made at different times, immediately before the first of the changes was made; and

(b)

immediately after the changes referred to in subsection (1) were made or, if the changes were made at different times, immediately after the last of the changes was made.

Despite the changes made as mentioned in subsection 960-105(1) to the managed investment scheme constituted by an entity to which this Subdivision applies:

(a)

the entity is taken, immediately after the changes were made or, if the changes were made at different times, immediately after the last of the changes was made, to be the same entity as existed immediately before the changes were made or, if the changes were made at different times, immediately before the first of the changes was made; and

(b)

the legal ownership of the assets of the entity is taken not to have altered as a result of the changes; and

(c)

the beneficial ownership of the interests in the entity of a member of the entity to whom this Subdivision applies in relation to those interests is taken not to have altered as a result of the changes; and

(d)

without limiting by implication any other effect of the above paragraphs, the changes are taken not to have resulted in a CGT event in respect of the entity, or in respect of a member of the entity in relation to the member's interests in the entity.

Income Tax Assessment Act 1997

2 Section 4-5 (note)

Note 1: The expression you is not used in provisions that apply only to entities that are not individuals.

Note 2: For circumstances in which the identity of an entity that is a managed investment scheme for the purposes of the Corporations Law is not affected by changes to the scheme, see Subdivision 960-E of the Income Tax (Transitional Provisions) Act 1997 .