Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p25
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 25/29)
Character Range: 2905091–2907673

of the credit under subsection (3) is:
where:
amount received is the *market value, when it is provided, of the consideration the company receives for the issue of the interest.
return of amount received is the sum of the amounts paid before 1 July 2001 by way of return, in whole or in part, of the amount received.
share capital account credit is the sum of any amounts credited before 1 July 2001 to the company's *share capital account in respect of the issue of the interest.
 (5) To avoid doubt, if:
 (a) it appears that a credit to the company's *non‑share capital account has arisen under this section because an interest in the company appears to be, or have become, an *equity interest at a time in a particular income year; and
 (b) because subsection 974‑75(6) or 974‑110(1A) is subsequently found to apply in relation to the interest and that income year, the interest was not in fact, or did not in fact become, an equity interest at that time;
the credit referred to in paragraph (a) is taken never to have arisen.

164‑20  Debits to non‑share capital account
 (1) The company may debit the whole or a part of a *non‑share distribution against the company's *non‑share capital account:
 (a) to the extent to which the distribution is made as consideration for the surrender, cancellation or redemption of a *non‑share equity interest in the company; or
 (b) to the extent to which:
 (i) the distribution is made in connection with a reduction in the *market value of a non‑share equity interest in the company; and
 (ii) the amount of the distribution is equal to the amount of the reduction in market value.
 (2) The total of the amounts debited to the account in respect of a particular *non‑share equity interest must not exceed the total of the amounts credited to the account in respect of the interest.
 (3) If:
 (a) an *equity interest in the company changes at a particular time (the change time) to a *debt interest in the company because of subsection 974‑110(1) or (2); or
 (b) an equity interest in the company changes to a debt interest in the company, with effect from a time (the change time) that is the start of a particular income year, because of subsection 974‑110(1A); or
 (c) the following conditions are satisfied in relation to an interest in the company:
 (i) subsection 974‑75(6) does not apply to the interest in relation to a particular income year;
 (ii) the interest is an equity interest in the company at the end of that income year;
 (iii) subsection 974‑75(6) applies to the interest from the time (the change time) that is the start