Document ID: chunk:federal_register_of_legislation:C2014A00133:clause:1_1:p1
Version: federal_register_of_legislation:C2014A00133
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/7)
Character Range: 4193–6926

1  Before Division 620
Insert:

Division 615—Roll‑overs for business restructures

Table of Subdivisions
 Guide to Division 615
615‑A Choosing to obtain roll‑overs
615‑B Further requirements for choosing to obtain roll‑overs
615‑C Consequences of roll‑overs
615‑D Consequences for the interposed company

Guide to Division 615

615‑1  What this Division is about

      You can choose for transactions under a scheme to restructure a company's or unit trust's business to be tax neutral if, under the scheme:
             (a) you cease to own shares in the company or units in the trust; and
             (b) in exchange, you become the owner of new shares in another company.

Subdivision 615‑A—Choosing to obtain roll‑overs

Table of sections
615‑5 Disposing of interests in one entity for shares in a company
615‑10 Redeeming or cancelling interests in one entity for shares in a company

615‑5  Disposing of interests in one entity for shares in a company
 (1) You can choose to obtain a roll‑over if:
 (a) you are a *member of a company or a unit trust (the original entity); and
 (b) you and at least one other entity (the exchanging members) own all the *shares or units in it; and
 (c) under a *scheme for reorganising its affairs, the exchanging members *dispose of all their shares or units in it to a company (the interposed company) in exchange for shares in the interposed company (and nothing else); and
 (d) the requirements in Subdivision 615‑B are satisfied.
Note 1: For paragraph (c), see section 124‑20 if an exchanging member uses a share sale facility.
Note 2: After the completion of the scheme, later dealings between the interposed company and the original entity may be subject to the rules for consolidated groups (see Part 3‑90).
 (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.

615‑10  Redeeming or cancelling interests in one entity for shares in a company
 (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 no more than 5 *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)