Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 18/64)
Character Range: 3339047–3341834

mutual entities, the total capital contributions amount referred to in subsection (2) is the sum of all the capital amounts:
 (a) that were contributed to the company by *members of the company before its demutualisation; and
 (b) in respect of which deductions are not allowable to the members; and
 (c) that were not payments for goods or services provided by the company.
 (4) If the company was formed by the merger of 2 or more mutual entities, the total capital contributions amount referred to in subsection (2) is the sum of:
 (a) all the capital amounts:
 (i) that were contributed to the company, before its demutualisation, by persons who became *members of the company at or after the time when the merger took place; and
 (ii) in respect of which deductions are not allowable to those members; and
 (iii) that were not payments for goods or services provided by the company; and
 (b) the *market values, at the time of the merger, of the entities that merged to form the company, as determined by a qualified valuer.

197‑35  Exclusion for transfers made in connection with demutualisations of insurance etc. companies
 (1) Subject to subsection (2), this Division does not apply to the transferred amount if:
 (a) the amount is transferred in connection with the demutualisation of a company; and
 (b) the demutualisation is implemented in accordance with a demutualisation method specified in Division 9AA of Part III of the Income Tax Assessment Act 1936; and
 (c) the transfer occurs within the listing period in relation to the demutualisation (see subsection 121AE(6) of that Act); and
 (d) the company (the issuing company) to whose *share capital account the amount is transferred is:
 (i) if the demutualisation method is the method specified in section 121AF or 121AG of the Income Tax Assessment Act 1936—the demutualising company; or
 (ii) if the demutualisation method is the method specified in section 121AH, 121AI, 121AJ, 121AK or 121AL of the Income Tax Assessment Act 1936—the company issuing the ordinary shares referred to in that section.
 (2) If the sum of:
 (a) the transferred amount; and
 (b) all amounts that were previously transferred to the issuing company's *share capital account, from another account of the company, in connection with the demutualisation; and
 (c) all amounts that were previously transferred to the issuing company's retained profit account in connection with the demutualisation;
exceeds the listing day company valuation amount (see subsection (3)), subsection (1) does not stop this Division from applying to so much of the transferred amount as equals the lesser of the transferred amount and the amount of the excess.
Note: If there are several transfers of amounts to the issuing company's share capital account, this