Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:5_4:p2
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 5 cl 4 (pt 2/8)
Character Range: 308386–311118

same terms for all of the owners of interests of a particular type in the original entity.

Note 1: The 80% or more requirement is satisfied if the acquiring entity ends up owning at least 80% of the voting shares in the original entity. This may include shares held before the arrangement started.

Note 2: Participation will be on substantially the same terms if, for example, matters such as those referred to in subsections 619(2) and (3) of the Corporations Law affect the capital proceeds that each participant can receive.

Conditions for roll‑over

 (3) The conditions are:
 (a) the original interest holder *acquired its original interest on or after 20 September 1985; and
 (b) apart from the roll‑over, it would make a *capital gain from a *CGT event happening in relation to its original interest; and
 (c) its replacement interest is in a company (the replacement entity) that is:
 (i) the company referred to in subparagraph (2)(a)(i); or
 (ii) in any other case—the *ultimate holding company of the *wholly‑owned group; and
 (d) the original interest holder chooses to obtain the roll‑over or, if section 124‑782 applies to it for the arrangement, it and the replacement entity jointly choose to obtain the roll‑over; and
 (e) if that section applies, the original interest holder informs the replacement entity in writing of the *cost base of its original interest worked out just before a CGT event happened in relation to it.

Note: If the original interest holder also exchanges a CGT asset that it acquired before 20 September 1985, the cost base of any interest received in exchange for it is worked out under section 124‑800.

Further roll‑over conditions in certain cases

 (4) The conditions specified in subsection (5) must be satisfied if the original interest holder and an acquiring entity did not deal with each other at *arm's length and:
 (a) neither the original entity nor the replacement entity had at least 300 *members just before the *arrangement started; or
 (b) the original interest holder, the original entity and an acquiring entity were all members of the same *linked group just before that time.

Note: There are some cases where a company will not be regarded as having 300 members: see section 124‑810.

 (5) The conditions are:
 (a) the market value of the original interest holder's *capital proceeds for the exchange is at least substantially the same as the market value of its original interest; and
 (b) its replacement interest carries the same kind of rights and obligations as those attached to its original interest.

CUFS

 (6) This section applies to the holder of a Chess Unit of Foreign Security as if the holder held the underlying interests that the unit represents.