Document ID: chunk:federal_register_of_legislation:C2025C00014:section:159gz:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 159GZ (pt 2/2)
Character Range: 1452001–1453528

separate security, then, for the purposes of the application of this Division in relation to the separate security in relation to any period after the transfer, paragraph (a) of the definition of qualifying security in subsection 159GP(1) shall be disregarded.
 (3) In subsections (1) and (2), payment right, in relation to a security, means a right to receive a particular payment that is liable to be made under the security.
 (4) Where:
 (a) at any time a taxpayer acquires or acquired a security (in this subsection referred to as the underlying security) on issue or transfer;
 (b) after 16 December 1984, the taxpayer issues a qualifying security (in this subsection referred to as the stripped security); and
 (c) but for this subsection, a deduction of an amount equal to the whole or a part of the issue price or, where the underlying security was acquired on transfer, the transfer price of the underlying security would be allowable from the assessable income of the taxpayer of the year of income in which the taxpayer issues the stripped security in respect of the issue of the stripped security;
the amount of the deduction allowable shall be an amount that bears to the issue price or transfer price, as the case may be, of the underlying security the same proportion as the market value of the stripped security at the time of issue or purchase, as the case may be, bears to the market value of the underlying security at that time.

Division 16J—Effect of cancellation of subsidiary's shares in holding company