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INCOME TAX ASSESSMENT ACT 1997 - SECT 115.290 Meaning of listed investment company

INCOME TAX ASSESSMENT ACT 1997 - SECT 115.290

Meaning of listed investment company

  (1)   A listed investment company is a company:

  (a)   that is an Australian resident; and

  (b)   * shares in which are listed for quotation on the official list of ASX Limited or an * approved stock exchange; and

  (c)   at least 90% of the * market value of whose * CGT assets consists of investments permitted by subsection   (4).

  (2)   A company is also a listed investment company if:

  (a)   it is a 100% subsidiary of a company that is a * listed investment company because of subsection   (1); and

  (b)   the subsidiary would be a listed investment company because of subsection   (1) if it were able to comply with paragraph   (1)(b).

  (3)   This Subdivision applies to a company that does not comply with paragraph   (1)(c) as if it did comply if the failure:

  (a)   was of a temporary nature only; and

  (b)   was caused by circumstances outside its control.

  (4)   The permitted investments are:

  (a)   * shares, units, options, rights or similar interests to the extent permitted by subsections   (5), (6), (7) and (8); or

  (b)   financial instruments (such as loans, debts, debentures, bonds, promissory notes, futures contracts, forward contracts, currency swap contracts and a right or option in respect of a share, security, loan or contract); or

  (c)   an asset whose main use by the company in the course of carrying on its * business is to * derive interest, an annuity, rent, royalties or foreign exchange gains unless:

  (i)   the asset is an intangible asset and has been substantially developed, altered or improved by the company so that its * market value has been substantially enhanced; or

  (ii)   its main use for deriving rent was only temporary; or

  (d)   goodwill.

  (5)   The company can own a * 100% subsidiary if the subsidiary is a listed investment company because of subsection   (2).

  (6)   The company can own (directly or indirectly) any percentage of another * listed investment company that is not the company's * 100% subsidiary.

  (7)   Otherwise, the company cannot own (directly or indirectly) more than 10% of another company or trust.

  (8)   In working out whether a company indirectly owns any part of another company or trust:

  (a)   disregard any ownership it has indirectly through a * listed public company or a * publicly traded unit trust; and

  (b)   if the company owns not more than 50% of another * listed investment company--disregard any ownership it has indirectly through the other company.

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