Document ID: chunk:federal_register_of_legislation:C2025C00014:section:159gz:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 159GZ (pt 1/2)
Character Range: 1449575–1452261

159GZ  Stripped securities
 (1) Where:
 (a) at any time a taxpayer acquires or acquired a security (in this subsection referred to as the underlying security) in relation to which there are or were 2 or more payment rights; and
 (b) the taxpayer transfers or transferred one or some but not all of those rights to a particular person or particular persons jointly;
for the purposes of the application of this Division (including any subsequent application of this subsection) in relation to any period after the transfer of the right or rights:
 (c) instead of the underlying security, there shall be taken to have been originally issued:
 (i) a separate security under which the payment right or payment rights transferred to the person or persons referred to in paragraph (b) were created;
 (ii) where at the time at which that right or those rights were transferred, another payment right or other payment rights in relation to the underlying security was or were transferred to another person or to other persons jointly—a separate security under which that other right or those other rights were created; and
 (iii) where immediately after the transfer the taxpayer retains or retained any payment right or rights—a separate security under which that right or those rights were created;
 (d) where the underlying security was issued to the taxpayer—the issue price of each separate security referred to in paragraph (c) shall be taken to be so much of the issue price of the underlying security as bears to that amount the proportion that the market value of the separate security at the time of issue of the underlying security bears to the market value of the underlying security at that time; and
 (e) where the underlying security was acquired by the taxpayer on transfer—the transfer price, in relation to that transfer, of each separate security referred to in paragraph (c) shall be taken to be so much of the transfer price of the underlying security as bears to that amount the proportion that the market value of the separate security at the time of transfer bears to the market value of the underlying security at that time.
 (2) Where, by reason of the application of subsection (1) in relation to the transfer after 16 December 1984 of a payment right or payment rights in relation to a security to a particular person or particular persons jointly, the payment right or rights is or are taken to comprise a separate security, then, for the purposes of the application of this Division in relation to the separate security in relation to any period after the transfer, paragraph (a) of the definition of qualifying security in subsection 159GP(1) shall be disregarded.