Document ID: chunk:federal_register_of_legislation:C2025C00014:section:121aa
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 121AA
Character Range: 1016931–1017569

121AA  What this Division is about

      Basically, if an insurance company demutualises and its policyholders or members dispose of their listed shares in the company, for tax purposes the acquisition cost of the shares is based on the lesser of:
               (a) the embedded value or net tangible asset value of the company; and
               (b) the value of the company based on the total first trading day price of all shares in the company.
      Other tax consequences result from disposals of other interests and from other events in connection with the demutualisation.

Subdivision B—Key concepts and related definitions