Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 128TH

                   This Division applies if:

                     (a)  a taxpayer acquires a threshold interest in an SME (see section 128TJ); and

                     (b)  afterwards, the taxpayer disposes of ordinary shares, or an interest in ordinary shares, in the SME that were issued to the taxpayer (whether before, at the time of, or after acquiring the threshold interest); and

                    (ba)  the disposal takes place:

                              (i)  in any case--in the course of the taxpayer carrying on a business of lending money or otherwise in connection with such a business of the taxpayer; or

                             (ii)  if the taxpayer is a company that is a subsidiary of another company--while the one or more members of the direct ownership group of the taxpayer (see subsection 128TL(3)) are each carrying on a business of lending money; and

                     (c)  the shares are not trading stock of the taxpayer; and

                     (d)  apart from this section:

                              (i)  any profit on the disposal would be included in the taxpayer's assessable income of a year of income under section 6‑5 of the Income Tax Assessment Act 1997 ; and

                             (ii)  any loss on the disposal would be allowable as a deduction from the taxpayer's assessable income of a year of income under section 8‑ 1 of that Act.