Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:8_6:p1
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 8 cl 6 (pt 1/5)
Character Range: 163878–166625

6  At the end of Division 124
Add:

Subdivision 124‑Q—Exchange of stapled ownership interests for ownership interests in a unit trust

Guide to Subdivision 124‑Q

124‑1040  What this Subdivision is about

      There is a roll‑over if you own ownership interests that are stapled and, as a result of a reorganisation, you stop owning those interests and you acquire or own ownership interests in an interposed unit trust.

Table of sections

Operative provisions

124‑1045 Exchange of stapled securities
124‑1050 Conditions
124‑1055 Consequences of the roll‑over for exchanging members
124‑1060 Consequences of the roll‑over for interposed trust
124‑1065 Certain foreign holders disregarded

Operative provisions

124‑1045  Exchange of stapled securities

 (1) There is a roll‑over if:
 (a) you own *ownership interests in 2 or more trusts, or in one or more companies and one or more trusts, and those interests are stapled together to form stapled securities; and
 (b) at least one of the trusts is a trust whose trustee is not assessed and liable to pay tax under Division 6B or 6C of Part III of the Income Tax Assessment Act 1936; and
 (c) if no company is involved—at least one of the trusts is a trust whose trustee is assessed and liable to pay tax under Division 6B or 6C of Part III of that Act; and
 (d) under a *scheme for reorganising the affairs of the relevant *stapled entities, you and the other entities that own the ownership interests in the stapled entities (together the exchanging members):
 (i) stop being the owner of those ownership interests and acquire ownership interests in a new unit trust (the interposed trust) and nothing else (a new trust case); or
 (ii) retain their ownership interests in one of those trusts (also the interposed trust), stop being the owner of the remaining ownership interests that form the stapled securities and receive nothing other than ownership interests in the interposed trust, or an increase in value of their existing ownership interests in the interposed trust, or both (an existing trust case); and
 (e) under the scheme, the interposed trust becomes the owner of:
 (i) for a new trust case—all of the ownership interests in the stapled entities; or
 (ii) for an existing trust case—all of the ownership interests in the other stapled entities; and
 (f) the conditions in section 124‑1050 are satisfied.

Note: Division 6B of Part III of the Income Tax Assessment Act 1936 deals with taxing corporate unit trusts in the same way as companies. Division 6C has the same effect in relation to public trading trusts.

 (2) An entity is a stapled entity in relation to stapled securities if *ownership interests in the entity form part of the stapled securities.

 (3) Ignore for