Commonwealth Consolidated Regulations

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INCOME TAX ASSESSMENT REGULATIONS 1997 - REG 974.135C

Redeemable preference shares

                For paragraph 974‑135 (8) (a) of the Act, an obligation to redeem or buy back a preference share in relation to a company is not a contingent obligation merely because a requirement exists, under a law, to the effect that:

                (a)    the redemption or buy back must not prejudice the company's ability to pay its creditors; or

               (b)    the redemption or buy back must not cause the company's remaining assets to become insufficient to pay any of the company's debts for which provision for payment has not otherwise been made.



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