Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.240

    You can choose to obtain a roll - over if:

  (a)   you own * shares (the original shares ) of a certain class in a company; and

  (b)   the company redeems or cancels all shares of that class; and

  (c)   the company issues you with new shares (and you receive nothing else) in substitution for the original shares; and

  (d)   the * market value of the new shares just after they were issued is at least equal to the market value of the original shares just before they were redeemed or cancelled; and

  (e)   the * paid - up share capital of the company just after the new shares were issued is the same as just before the original shares were redeemed or cancelled; and

  (f)   one of these requirements is satisfied:

  (i)   you are an Australian resident at the time of the redemption or cancellation; or

  (ii)   if you are a foreign resident at that time--the original shares were * taxable Australian property just before that time and the new shares are taxable Australian property when they are issued.

Note 1:   The roll - over consequences are set out in Subdivision   124 - A. The original assets are the original shares. The new assets are the new shares.

Note 2:   Section   103 - 25 tells you when you have to make the choice.