Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The partners must own all the * shares in the company just after the time of the trigger event.
(2) Each partner must own the * shares the partner received for the trigger event happening in the same capacity that the partner:
(a) owned the partner's interests in the assets that the company now owns; or
(b) participated in the creation of the asset in the company.
Note: If a partner's interests were owned as trustee, the partner must receive shares as trustee.
(3) This Subdivision does not apply to the * disposal or creation of any of the assets specified in this table:
Assets to which Subdivision does not apply | ||
Item | In this situation: | This Subdivision does not apply to: |
1 | The partners * dispose of their interests in a * CGT asset to, or create a CGT asset in, the company | (a) a * collectable or a * personal use asset; or (b) a decoration awarded for valour or brave conduct (except if a partner paid money or gave any other property for it); or (c) a * precluded asset; or (d) an asset that becomes * trading stock of the company just after the * disposal or creation |
2 | The partners * dispose of their interests in all the assets of a business | (a) a * collectable or a * personal use asset; or (b) a decoration awarded for valour or brave conduct (except if a partner paid money or gave any other property for it); or (c) an asset that becomes * trading stock of the company just after the disposal or creation (unless it was trading stock of the partnership when it was disposed of) |
(4) If:
(a) the * CGT asset or any of the assets of the * business is a right, option, * convertible interest or * exchangeable interest; and
(b) the company * acquires another CGT asset by exercising the right or option or by converting the convertible interest or in exchange for the disposal or redemption of the exchangeable interest;
the other asset cannot become * trading stock of the company just after the company acquired it.
(5) The * ordinary income and * statutory income of the company must not be exempt from income tax because it is an * exempt entity for the income year of the trigger event.
(6) For a partner who is not a trustee of a trust at the time of the trigger event, either:
(a) the partner and the company must both be Australian residents at that time; or
(b) both of the following requirements must be satisfied:
(i) each asset must be * taxable Australian property at that time; and
(ii) the shares in the company mentioned in subsection 122 - 130(1) must be taxable Australian property just after that time.
(7) For a partner who is a trustee of a trust at the time of the trigger event, either:
(a) at that time, the trust must be a * resident trust for CGT purposes and the company must be an Australian resident; or
(b) both of the following requirements must be satisfied:
(i) each * CGT asset must be a CGT asset of the trust that is * taxable Australian property at that time; and
(ii) the shares in the company mentioned in subsection 122 - 130(1) must be taxable Australian property just after that time.