Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 20/64)
Character Range: 3344171–3347030

(the issuing company) to whose *share capital account the amount is transferred is either:
 (i) the *friendly society described in that Division; or
 (ii) the company that owns all the shares in the friendly society.
 (2) Subsection (1) does not stop this Division from applying to so much, if any, of the transferred amount as exceeds the sum of the *cost bases of *shares in the issuing company that:
 (a) are demutualisation assets (see section 316‑110); and
 (b) are issued to an entity covered by section 316‑115.
Note: Section 316‑115 identifies entities connected directly or indirectly with the friendly society and affected by the special cost base rules in section 316‑105.
 (3) For the purposes of subsection (2), work out the *cost base of a *share on the day on which it is issued, taking account of section 316‑105.

197‑40  Exclusion for post‑demutualisation transfers relating to life insurance companies
 (1) Subject to subsection (2), this Division does not apply to the transferred amount if:
 (a) a *life insurance company (the demutualised company) has demutualised; and
 (b) the demutualisation was implemented in accordance with a demutualisation method specified in Division 9AA of Part III of the Income Tax Assessment Act 1936; and
 (c) the amount is transferred after the end of the listing period in relation to the demutualisation (see subsection 121AE(6) of that Act); and
 (d) the company transferring the amount to its *share capital account is either:
 (i) the demutualised company (whichever demutualisation method was used); or
 (ii) if the demutualisation method was the method specified in section 121AH, 121AI, 121AJ, 121AK or 121AL of the Income Tax Assessment Act 1936—the company (the issuing company) that issued the ordinary shares referred to in that section; and
 (e) if subparagraph (d)(i) applies—the following conditions are satisfied in relation to the transferred amount:
 (i) the amount is transferred from an account of the demutualised company consisting of shareholders' capital (within the meaning of the Life Insurance Act 1995) in relation to a statutory fund (within the meaning of that Act);
 (ii) the amount was part of such an account at the time of the demutualisation; and
 (f) if subparagraph (d)(ii) applies—the amount is transferred from a capital reserve created at the time of or in connection with the demutualisation.
 (2) If the sum of:
 (a) the transferred amount; and
 (b) all amounts that were previously transferred to the demutualised company's *share capital account, from another account of the demutualised company, as described in subsection (1); and
 (c) if the demutualisation method was the method specified in section 121AH, 121AI, 121AJ, 121AK or 121AL of the Income Tax Assessment Act 1936—all amounts that were previously transferred to the issuing company's share capital