Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p3
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 3/3)
Character Range: 520743–522896

in *shares in a company or in units in a unit trust.

 (6) An issue, redemption or transfer, or any other dealing, is a trading if, and only if, it changes the respective proportions in which *ultimate owners have *underlying interests in *CGT assets of the company or trust.

 (7) Section 960‑235 (about suspected transactions involving 5% or more of *shares in the company or units in the trust) is disregarded.

149‑60  What the determination must show

 (1) The determination must show whether, at the end of the *test day, *majority underlying interests in the asset were had by *ultimate owners who also had *majority underlying interests in the asset at the end of the starting day. The starting day is:

 (a) a day the entity chooses under subsection (2); or

 (b) if no day is so chosen—19 September 1985.

 (2) The day chosen:

 (a) must be no earlier than 1 July 1985 and no later than 30 June 1986; and

 (b) must be one the choice of which will result in a determination that gives a reasonable approximation of the *ultimate owners who had *underlying interests in the assets of the entity at the end of 19 September 1985.

How unidentified owners are treated

 (3) So far as the entity cannot identify from examining its records who had *underlying interests in the asset at the end of the *starting day, it must make the determination on the basis that those interests were then had by *ultimate owners who did not have *underlying interests in the asset at the end of the *test day.

New owner standing in the shoes of former owner

 (4) Subsection (5) affects how the entity must make the determination if an *ultimate owner (the new owner) has acquired a percentage (the acquired percentage) of the *underlying interests in the asset because of an event described in column 2 of an item in the table. The former owner is the entity described in column 3 of that item.

Events leading to new owner standing in for former owner
Item                                                      For this kind of event:                                                                                         The former owner is: