Document ID: chunk:federal_register_of_legislation:C2010C00611:clause:1_3
Version: federal_register_of_legislation:C2010C00611
Segment Type: clause
Provision Reference: sch 1 cl 3
Character Range: 3245–4625

3  After subsection 70B(2A)
Insert:

 (2B) A deduction is not allowable under subsection (2) for a loss on the disposal or redemption of a traditional security if:
 (a) the disposal or redemption occurs because the traditional security is converted into ordinary shares in a company that is:
 (i) the issuer of the traditional security; or
 (ii) a connected entity of the issuer of the traditional security; and
 (b) the traditional security was issued on the basis that it will or may convert into ordinary shares in:
 (i) the issuer of the traditional security; or
 (ii) the connected entity.

 (2C) A deduction is not allowable under subsection (2) for a loss on the disposal or redemption of a traditional security if:
 (a) the disposal or redemption is in exchange for ordinary shares in a company that is neither:
 (i) the issuer of the traditional security; nor
 (ii) a connected entity of the issuer of the traditional security; and
 (b) in the case of a disposal—the disposal is to:
 (i) the issuer of the traditional security; or
 (ii) a connected entity of the issuer of the traditional security; and
 (c) the traditional security was issued on the basis that it will or may be:
 (i) disposed of to the issuer of the traditional security or to the connected entity; or
 (ii) redeemed;
  in exchange for ordinary shares in the company.

Income Tax Assessment Act 1997