Document ID: chunk:federal_register_of_legislation:C2025C00014:section:121as:p4
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 121AS (pt 4/7)
Character Range: 1066715–1075330

shares are the original shares mentioned in that section.          (a) to have paid as consideration for the acquisition of the share or interest both:
                                                                                                                                                                                                                                                                                                                                                                                       (i) the amount worked out using the formula:
                                                                                                                                                                                                                                                                                                                                                                                       ; and
                                                                                                                                                                                                                                                                                                                                                                                       (ii) any consideration actually paid or given for the acquisition; and
   (For the purposes of the modifications relating to this item, if any of the original shares mentioned in that section is a demutualisation share, it is called a demutualisation original share.)                                                                                                                                                                                 (b) to have paid the amount in subparagraph (a)(i) on the demutualisation resolution day and the amount in subparagraph (a)(ii) when it was actually paid; and
                                                                                                                                                                                                                                                                                                                                                                                     (c) to have acquired the share or interest on the demutualisation resolution day.
                                                                                                                                                                                                                                                                                                                                                                                3. If the disposal is of either:
                                                                                                                                                                                                                                                                                                                                                                                     (a) a demutualisation original share, or an interest in such a share; or
                                                                                                                                                                                                                                                                                                                                                                                     (b) a non‑demutualisation bonus share, or an interest in such a share;
                                                                                                                                                                                                                                                                                                                                                                                   then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal:
                                                                                                                                                                                                                                                                                                                                                                                     (c) for the purposes of applying section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997, the consideration for the acquisition of all of the demutualisation original shares to be taken into account under that section is taken to consist of both:
                                                                                                                                                                                                                                                                                                                                                                                       (i) the amount worked out using the formula:

                                                                                                                                                                                                                                                                                                                                                                                       ; and

                                                                                                                                                                                                                                                                                                                                                                                       (ii) any consideration actually paid or given for the acquisition of the share or interest disposed of; and
                                                                                                                                                                                                                                                                                                                                                                                     (d) if the disposal is of a share connected with the demutualisation or interest in such a share, the disposer is taken:
                                                                                                                                                                                                                                                                                                                                                                                       (i) to have paid the amount in subparagraph (c)(i) on the demutualisation resolution day and the amount in subparagraph (c)(ii) when it was actually paid; and
                                                                                                                                                                                                                                                                                                                                                                                       (ii) to have acquired the share or interest on the demutualisation resolution day.
  7 Demutualisation method 3, 4, 5 or 7:
   After the issue of the shares in the mutual insurance company to the holding company as mentioned in paragraph 121AH(1)(b), 121AI(1)(b), 121AJ(1)(b), or in the mutual insurance company and the mutual affiliate company as mentioned in paragraph 121AL(1)(b):                                                                                                               The same modifications apply as for item 5.
    (a) the ultimate holding company (the disposer) disposes of an asset consisting of either of the following shares in the holding company or an interposed holding company:
       (i) a share (a demutualisation share) acquired before the issue of the shares in the mutual insurance company, or an interest in such a share; or
       (ii) another share (a non‑demutualisation bonus share), or an interest in such a share, where the share is a bonus share mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997