Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p27
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 27/59)
Character Range: 2599381–2602012

interests each of those entities owns in the transferee must be at least substantially the same as the market value of the interests it owned in the transferor or transferors just before the start of the trust restructuring period.
Note 1: Any assets in the company just before the start of the trust restructuring period may affect the ability of owners of units or interests to comply with paragraph (6)(b).
Note 2: See section 124‑20 if an entity uses an interest sale facility.
 (7) For the purposes of subsection (6), ignore any *shares in the transferee that:
 (a) just before the start of the *trust restructuring period, were owned by entities who together owned no more than 5 shares; and
 (b) just after the end of that period, represented such a low percentage of the total *market value of all the shares that it is reasonable to treat other entities as if they owned all the shares in the transferee.
Example: To continue the example in subsection 124‑855(2), assume that Jonathon Pty Ltd was a shelf company organised for Matthew and Jaclyn by their solicitor, Indira.
 Indira owned the 2 shares in Jonathon Pty Ltd before the trust restructuring period. The company issues Matthew and Jaclyn 5,000 shares each.
 In these circumstances, it is reasonable to treat Matthew and Jaclyn as if they owned all the shares in Jonathon Pty Ltd.

124‑865  Entities both choose the roll‑over
  A roll‑over is only available for the transferor and transferee if both the transferor and transferee choose to obtain it.
Note 1: If they do so, the consequences for the transferor and transferee are set out in section 124‑875.
Note 2: An entity that owns a unit or interest in the transferor can also choose to obtain a roll‑over: see section 124‑870.

124‑870  Roll‑over for owner of units or interests in a trust
 (1) You can choose to obtain a roll‑over (whether or not the transferor and transferee choose to obtain a roll‑over, and even if *CGT event J4 applies) if:
 (a) you own units or interests in the transferor (your original interests); and
 (b) the ownership of all your units or interests ends under a trust restructure in exchange for *shares in the transferee (your replacement interests).
Note 1: The roll‑over consequences are set out in Subdivision 124‑A. The original assets are your units and interests in the transferor. The new assets are your shares in the transferee.
Note 2: The effect of the roll‑over may be reversed if the transferor does not cease to exist within 6 months: see section 104‑195.
 (2) You must make the choice for each of your original interests.
 (3) An entity that is a foreign resident