Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p24
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 24/59)
Character Range: 2592047–2594689

deals with business restructures.
 (4) You cannot obtain the roll‑over for the *CGT event happening in relation to the exchange of your qualifying interest if:
 (a) the replacement entity makes a choice to that effect under this subsection; and
 (b) that entity or the original entity notifies you in writing of the choice before the exchange.

124‑800  Interest received for pre‑CGT interest
 (1) If, in consequence of the *arrangement, you exchange an interest that you *acquired before 20 September 1985 for an interest in the replacement entity, the first element of the *cost base and *reduced cost base of the interest in the replacement entity is its *market value just after you acquired it.
 (2) The *cost base and *reduced cost base of the interest in the replacement entity is reduced if all or part of a *capital gain from *CGT event K6 happening is disregarded because of subsection 104‑230(10). The amount of the reduction is the amount of the *capital gain you disregard under that subsection.
Note 1: The full list of CGT events is in section 104‑5.
Note 2: Subsection 104‑230(10) provides that a capital gain from CGT event K6 is disregarded to the extent that you could have chosen a roll‑over under this Subdivision if your original interest had been post‑CGT.

124‑810  Certain companies and trusts not regarded as having 300 members or beneficiaries
 (1) For the purposes of this Subdivision, a company is treated as if it did not have at least 300 *members if subsection (3) or (5) applies to it.
 (2) For the purposes of this Subdivision, a trust is treated as if it did not have at least 300 beneficiaries if subsection (4) or (5) applies to it.

Concentrated ownership
 (3) This subsection applies to a company if an individual owns, or up to 20 individuals own between them, directly or indirectly (through one or more interposed entities) and for their own benefit, *shares in the company:
 (a) carrying *fixed entitlements to:
 (i) at least 75% of the company's income; or
 (ii) at least 75% of the company's capital; or
 (b) carrying at least 75% of the voting rights in the company.
 (4) This subsection applies to a trust if an individual owns, or up to 20 individuals own between them, directly or indirectly (through one or more interposed entities) and for their own benefit, units or other fixed interests in the trust:
 (a) carrying *fixed entitlements to:
 (i) at least 75% of the trust's income; or
 (ii) at least 75% of the trust's capital; or
 (b) if beneficiaries of the trust have a right to vote in respect of activities of the trust—carrying at least 75% of those voting rights.

Possible variation