Document ID: chunk:federal_register_of_legislation:C2025C00014:section:121at:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 121AT (pt 1/5)
Character Range: 1084526–1094264

121AT  Other tax consequences of demutualisation
  The table below sets out modifications of the application of this Act (except Parts 3‑1 and 3‑3 (about CGT) of the Income Tax Assessment Act 1997) in respect of events that are described in, or relate to events that are described in, particular demutualisation methods.
TABLE 2—MODIFICATIONS OF THIS ACT (EXCEPT CGT RULES)
         Item Event                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Modifications

   1 Event described in item 1 of Table 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       No amount is included in, or allowable as a deduction from, assessable income in respect of the extinguishment.
   2 Event described in item 3 or 4 of Table 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     1. If the disposal takes place before the demutualisation listing day (see note 4 to Table 1):
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (a) no loss is allowable as a deduction from the disposer's assessable income in respect of the disposal; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (b) any deduction allowable from the disposer's assessable income in respect of the acquisition of the right or interest does not exceed the amount included in the disposer's assessable income in respect of the disposal.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    2. Paragraphs 2(a) and (b) of the modifications column for item 3 or 4 in Table 1 apply for the purposes of working out:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (a) the amount of any profit included in the disposer's assessable income in respect of the disposal; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (b) the amount of any deduction allowable from the disposer's assessable income in respect of the acquisition of the right or interest.

   3 Event that would be described in item 5 of Table 1 if the references in that item to bonus shares and original shares mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 were instead references to bonus shares and original shares mentioned in section 6BA.                                                                                                                                                                                                                                             1. If the disposal is of a demutualisation share, or interest in such a share, and the disposal takes place before the demutualisation listing day:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (a) no loss is allowable as a deduction from the disposer's assessable income in respect of the disposal; and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (b) any deduction allowable from the disposer's assessable income in respect of the acquisition of the share or interest does not exceed the amount included in the disposer's assessable income in respect of the disposal.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    2. If the disposal is of a demutualisation share (other than a demutualisation original share), or an interest in such a share, then paragraphs 2(a) to (c) of the modifications column for item 5 in Table 1 apply for the purposes of working out:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (a) the amount of any profit included in, or loss (where modification 1 does not apply) allowable as a deduction from, the disposer's assessable income in respect of the disposal; or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (b) the amount of any deduction allowable (where modification 1