Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p74
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 74/95)
Character Range: 5739498–5742124

of, redeemed or cancelled under the scheme (worked out immediately before the first disposal, redemption or cancellation).
Example 1: There are 100 shares in A Pty Ltd (the original entity), all having the same rights. B Pty Ltd (the interposed company) acquires all the shares in A by issuing each shareholder in A 10 shares in itself for each share they have in A. All shares in B have the same rights. Bill owned 15 shares in A and received 150 shares in B in exchange.
Example 2: There are 1,000 units in the A unit trust (the original entity), all having the same rights. 2 new units in A are issued to B Pty Ltd (the interposed company), and all other units in A are cancelled. Each unitholder in A is issued 10 shares in B for each 100 units they have in A. All shares in B have the same rights. Alison owned 200 units in A and received 20 shares in B in exchange.
 (3) Either:
 (a) you are an Australian resident at the time your *shares or units in the original entity are disposed of, redeemed or cancelled under the *scheme; or
 (b) if you are a foreign resident at that time:
 (i) your shares or units in the original entity were *taxable Australian property immediately before that time; and
 (ii) your shares in the interposed company are taxable Australian property immediately after the completion time.

615‑25  Requirements relating to the interposed company
 (1) The *shares issued in the interposed company must not be *redeemable shares.
 (2) Each exchanging member who is issued *shares in the interposed company must own the shares from the time they are issued until at least the completion time.
 (3) Immediately after the completion time:
 (a) the exchanging members must own all the *shares in the interposed company; or
 (b) entities other than those members must own no more than 5 shares in the interposed company, and the *market value of those shares expressed as a percentage of the market value of all the shares in the interposed company must be such that it is reasonable to treat the exchanging members as owning all the shares.

615‑30  Interposed company must make a particular choice
 (1) Unless subsection (2) applies, the interposed company must choose that section 615‑65 applies.
 (2) The interposed company must choose that a *consolidated group continues in existence at and after the completion time with the interposed company as its *head company, if:
 (a) immediately before the completion time, the consolidated group consisted of the original entity as head company and one or more other members (the other group members); and
 (b) immediately after the completion time, the