INCOME TAX ASSESSMENT ACT 1997 - SECT 165.115L Alteration time--alteration in ownership of company

INCOME TAX ASSESSMENT ACT 1997 - SECT 165.115L

  (1)   A time (the test time ) is an alteration time in respect of a company if:

  (a)   persons who had * more than 50% of the voting power in the company at the reference time do not have more than 50% of that voting power immediately after the test time; or

  (b)   persons who had rights to * more than 50% of the company's dividends at the reference time do not have rights to more than 50% of those dividends immediately after the test time; or

  (c)   persons who had rights to * more than 50% of the company's capital distributions at the reference time do not have rights to more than 50% of those distributions immediately after the test time.

Note 1:   See section   165 - 150 to work out who had more than 50% of the voting power in the company.

Note 2:   See section   165 - 155 to work out who had rights to more than 50% of the company's dividends.

Note 3:   See section   165 - 160 to work out who had rights to more than 50% of the company's capital distributions.

Note 4:   Division   167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.

  (2)   The reference time is:

  (a)   if no alteration time occurred in respect of the company before the * test time--the commencement time; or

  (b)   otherwise--the time immediately after the last alteration time.

  (3)   To work out whether paragraph   (1)(a), (b) or (c) applied at a particular time, apply the primary test unless subsection   (4) requires the alternative test to be applied.

Note:   For the primary test see subsections   165 - 150(1), 165 - 155(1) and 165 - 160(1).

  (4)   Apply the alternative test if one or more other companies beneficially owned * shares or interests in shares in the company at any time during the period from the reference time to the * test time.

Note:   For the alternative test see subsections   165 - 150(2), 165 - 155(2) and 165 - 160(2).

  (5)   If the company is:

  (a)   a * non - profit company; or

  (b)   a * mutual affiliate company; or

  (c)   a * mutual insurance company;

during the whole of the period from the reference time to the * test time, the test time is taken not to be an * alteration time in respect of the company because of the application of paragraphs   (1)(b) and (c).