INCOME TAX ASSESSMENT ACT 1997 - SECT 615.10 Redeeming or cancelling interests in one entity for shares in a company

INCOME TAX ASSESSMENT ACT 1997 - SECT 615.10

  (1)   You can choose to obtain a roll - over if you are a * member of a company or a unit trust (the original entity ), and under a * scheme for reorganising its affairs:

  (a)   a company (the interposed company ) * acquires one or more, but not all, of the * shares or units in the original entity; and

  (b)   these are the first shares or units that the interposed company acquires in the original entity; and

  (c)   you and at least one other entity (the exchanging members ) own all the remaining shares or units in the original entity; and

  (d)   those remaining shares or units are redeemed or cancelled; and

  (e)   each exchanging member receives shares (and nothing else) in the interposed company in return for their shares or units in the original entity being redeemed or cancelled;

and the requirements in Subdivision   615 - B are satisfied.

Note:   For paragraph   (e), see section   124 - 20 if an exchanging member uses a share sale facility.

  (2)   You are taken to have chosen to obtain the roll - over if:

  (a)   immediately before the completion time (see section   615 - 15), the original entity is the * head company of a * consolidated group; and

  (b)   immediately after the completion time, the interposed company is the head company of the group.

Note:   The consolidated group continues in existence because of section   703 - 70.

  (3)   The original entity, or its trustee if it is a unit trust, can issue other * shares or units to the interposed company as part of the * scheme.

Note:   Some of the interposed company's shares or units in the original entity may be taken to be acquired before 20   September 1985: see section   615 - 65.

Table of sections

615 - 15   Interposed company must own all the original interests

615 - 20   Requirements relating to your interests in the original entity

615 - 25   Requirements relating to the interposed company

615 - 30   Interposed company must make a particular choice

615 - 35   ADI restructures--disregard certain preference shares