Document ID: chunk:federal_register_of_legislation:C2012C00388:clause:4_1:p5
Version: federal_register_of_legislation:C2012C00388
Segment Type: clause
Provision Reference: sch 4 cl 1 (pt 5/10)
Character Range: 21426–24285

(whichever demutualisation method was used); or
 (ii) if the demutualisation method was the method specified in section 121AH, 121AI, 121AJ, 121AK or 121AL of the Income Tax Assessment Act 1936—the company (the issuing company) that issued the ordinary shares referred to in that section; and
 (e) if subparagraph (d)(i) applies—the following conditions are satisfied in relation to the transferred amount:
 (i) the amount is transferred from an account of the demutualised company consisting of shareholders' capital (within the meaning of the Life Insurance Act 1995) in relation to a statutory fund (within the meaning of that Act);
 (ii) the amount was part of such an account at the time of the demutualisation; and
 (f) if subparagraph (d)(ii) applies—the amount is transferred from a capital reserve created at the time of or in connection with the demutualisation.

 (2) If the sum of:
 (a) the transferred amount; and
 (b) all amounts that were previously transferred to the demutualised company's *share capital account, from another account of the demutualised company, as described in subsection (1); and
 (c) if the demutualisation method was the method specified in section 121AH, 121AI, 121AJ, 121AK or 121AL of the Income Tax Assessment Act 1936—all amounts that were previously transferred to the issuing company's share capital account, from another account of the issuing company, as described in subsection (1); and
 (d) all amounts that were previously transferred, in connection with the demutualisation, to the share capital account of the issuing company (within the meaning of section 197‑35) as described in subsection 197‑35(1), or to its retained profit account as described in paragraph 197‑35(2)(c);
exceeds the listing day company valuation amount (see subsection (3)), subsection (1) does not stop this Division from applying to so much of the transferred amount as equals the lesser of the transferred amount and the amount of the excess.

Note: If there are several transfers of amounts to the share capital account of the demutualised company or the issuing company, this section must be applied separately in relation to each transferred amount, in the order in which the transfers are made.

 (3) The listing day company valuation amount has the same meaning as it has for the purposes of table 1 in section 121AS of the Income Tax Assessment Act 1936, as that table applies in relation to the demutualised company (see note 3 to that table).

Subdivision 197‑B—Consequence of transfer: franking debit arises

Table of sections

197‑45 A franking debit arises in relation to the transfer

197‑45  A franking debit arises in relation to the transfer

 (1) A *franking debit arises in a company's *franking account if an amount (the transferred amount) to which this Division applies is transferred to the company's *share