Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 7/7)
Character Range: 2468692–2469902

asset or assets, disregard the difference.
Note: The company may have to pay income tax if an amount is included in its assessable income because of a CGT event happening to an asset a partner disposed of, or it may have a liability because of accrued leave entitlements of employees. The market value of the shares will reflect these contingent liabilities.

122‑135  Other requirements to be satisfied
 (1) The partners must own all the *shares in the company just after the time of the trigger event.
 (2) Each partner must own the *shares the partner received for the trigger event happening in the same capacity that the partner:
 (a) owned the partner's interests in the assets that the company now owns; or
 (b) participated in the creation of the asset in the company.
Note: If a partner's interests were owned as trustee, the partner must receive shares as trustee.
 (3) This Subdivision does not apply to the *disposal or creation of any of the assets specified in this table:

Assets to which Subdivision does not apply
Item                                        In this situation:                                                                                  This Subdivision does not apply to: