Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p24
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 24/29)
Character Range: 2902752–2905320

the company:
 (i) subsection 974‑75(6) applies to the interest in relation to a particular income year;
 (ii) that subsection does not apply to the interest in relation to the next income year;
 (iii) the interest is an equity interest in the company at the time (the change time) that is the start of that next income year.
 (2) The account continues in existence even if the company ceases to have any *non‑share equity interests on issue.
 (3) The balance of the account cannot fall below nil.
 (4) The only credits and debits that may be made to the account are those provided for in sections 164‑15 and 164‑20.

164‑15  Credits to non‑share capital account
 (1) If the company issues a *non‑share equity interest in the company on or after 1 July 2001, there is a credit to the *non‑share capital account equal to:
where:
amount received is the *market value, when it is provided, of the consideration the company receives for the issue of the interest.
share capital account credit is the amount of any credit made to the company's *share capital account in respect of the issue of the interest.
Note: The issue of a non‑share equity interest can give rise to a credit to the company's share capital account if the interest consists, for example, of a stapled security that includes a share in the company's capital.
 (2) If paragraph 164‑10(1)(c), (d) or (e) applies in relation to a particular interest in the company, there is a credit to the *non‑share capital account at the change time referred to in that paragraph of an amount equal to:
where:
amount received is the *market value, when it was provided, of the consideration the company received for the issue of the interest.
amount returned is so much of the amount received as has been returned to a holder of the interest before the change time.
share capital account credit is the amount of any credit made to the company's *share capital account in respect of the issue of the interest.
 (3) If the company has a *non‑share capital account at the beginning of 1 July 2001 because of a *non‑share equity interest the company issued before 1 July 2001, there is a credit to the non‑share capital account on that day for each non‑share equity interest in the company that:
 (a) was issued before 1 July 2001; and
 (b) is still in existence on 1 July 2001.
 (4) The amount 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