Document ID: chunk:federal_register_of_legislation:C2012C00388:clause:4_2:p1
Version: federal_register_of_legislation:C2012C00388
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 1/4)
Character Range: 34175–37059

2  At the end of Part 3‑5
Add:

Division 197—Tainted share capital accounts

Table of Subdivisions

197‑A Definitions
197‑B General application provision
197‑C Special provisions about companies whose share capital accounts were tainted when old Division 7B was closed off

Subdivision 197‑A—Definitions

Table of sections

197‑1 Definitions

197‑1  Definitions

  In this Part:

introduction day means the day on which the Bill for the Act that added this Division was introduced into the Parliament.

new Division 197 means Division 197 of the Income Tax Assessment Act 1997.

old Division 7B means Division 7B of Part IIIAA of the Income Tax Assessment Act 1936.

old Division 7B close‑off day means 1 July 2002.

Subdivision 197‑B—General application provision

Table of sections

197‑5 Application of new Division 197

197‑5  Application of new Division 197

  Subject to Subdivision 197‑C of this Division, new Division 197 applies to transfers made into a company's share capital account after the introduction day.

Subdivision 197‑C—Special provisions about companies whose share capital accounts were tainted when old Division 7B was closed off

Table of sections

197‑10 Subdivision applies to companies whose share capital accounts were tainted when old Division 7B was closed off
197‑15 Account taken to have ceased to be tainted when old Division 7B was closed off
197‑20 After introduction day, account taken to have become tainted under new Division 197 to extent of previous tainting
197‑25 Special provisions if company chooses to untaint after introduction day

197‑10  Subdivision applies to companies whose share capital accounts were tainted when old Division 7B was closed off

  This Subdivision applies to a company if, immediately before the old Division 7B close‑off day, the company's share capital account was tainted under old Division 7B.

197‑15  Account taken to have ceased to be tainted when old Division 7B was closed off

 (1) The company's share capital account is taken to have ceased to be tainted under old Division 7B at the start of the Division 7B close‑off day.

 (2) No liability to untainting tax, and no franking debit, arises under old Division 7B in relation to the share capital account being taken to have ceased to be tainted.

197‑20  After introduction day, account taken to have become tainted under new Division 197 to extent of previous tainting

 (1) Immediately after the introduction day, the company's share capital account is taken to become tainted under new Division 197 as if:
 (a) the company had, at that time, transferred an amount (the notionally transferred amount) to its share capital account from another of its accounts that equalled the tainting amount (the old Division 7B tainting amount), within the meaning of old Division 7B, in relation to the share capital account immediately before the old