Document ID: chunk:federal_register_of_legislation:C2011C00702:clause:2_560
Version: federal_register_of_legislation:C2011C00702
Segment Type: clause
Provision Reference: sch 2 cl 560
Character Range: 119377–120272

560  Section 326‑190 in Schedule 2H
Repeal the section, substitute:

326‑190  Extinguishment of right to shares in demutualised entity by the issue of the shares

 (1) If, under the direct method of demutualisation or the holding company method of demutualisation, shares in a demutualised entity are issued to an existing member, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 do not apply in respect of any CGT event constituted by the extinguishment of the member's right to have the shares issued to the member.

 (2) If, under the combined direct and holding company method of demutualisation, shares in a demutualised entity or in a holding company are issued to an existing member, Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 do not apply in respect of any CGT event constituted by the extinguishment of the member's rights to have the shares issued to the member.