Document ID: chunk:federal_register_of_legislation:C2012C00388:clause:4_1:p4
Version: federal_register_of_legislation:C2012C00388
Segment Type: clause
Provision Reference: sch 4 cl 1 (pt 4/10)
Character Range: 18817–21694

transferred in connection with the demutualisation of a company; and
 (b) the demutualisation is implemented in accordance with a demutualisation method specified in Division 9AA of Part III of the Income Tax Assessment Act 1936; and
 (c) the transfer occurs within the listing period in relation to the demutualisation (see subsection 121AE(6) of that Act); and
 (d) the company (the issuing company) to whose *share capital account the amount is transferred is:
 (i) if the demutualisation method is the method specified in section 121AF or 121AG of the Income Tax Assessment Act 1936—the demutualising company; or
 (ii) if the demutualisation method is the method specified in section 121AH, 121AI, 121AJ, 121AK or 121AL of the Income Tax Assessment Act 1936—the company issuing the ordinary shares referred to in that section.

 (2) If the sum of:
 (a) the transferred amount; and
 (b) all amounts that were previously transferred to the issuing company's *share capital account, from another account of the company, in connection with the demutualisation; and
 (c) all amounts that were previously transferred to the issuing company's retained profit account in connection with the demutualisation;
exceeds the listing day company valuation amount (see subsection (3)), subsection (1) does not stop this Division from applying to so much of the transferred amount as equals the lesser of the transferred amount and the amount of the excess.

Note: If there are several transfers of amounts to the issuing company's share capital account, this section must be applied separately in relation to each transferred amount, in the order in which the transfers are made.

 (3) The listing day company valuation amount has the same meaning as it has for the purposes of table 1 in section 121AS of the Income Tax Assessment Act 1936, as that table applies in relation to the demutualising company (see note 3 to that table).

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