Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 164.10

  (1)   A company has a non - share capital account if:

  (a)   the company issues a * non - share equity interest in the company on or after 1   July 2001; or

  (b)   the company has issued a non - share equity interest in the company before 1   July 2001 that is still in existence on 1   July 2001; or

  (c)   a * debt interest in the company changes at a particular time (the change time ) to an * equity interest in the company because of subsection   974 - 110(1) or (2); or

  (d)   the following conditions are satisfied in relation to an interest in the company:

  (i)   immediately before subsection   974 - 75(4) ceases to have effect, the interest is taken to be a debt interest in the company because of that subsection;

  (ii)   the interest is an equity interest in the company at the time (the change time ) that is immediately after that cessation;

  (iii)   subsection   974 - 75(6) does not apply to the interest in relation to the income year that includes the change time; or

  (e)   the following conditions are satisfied in relation to an interest in the company:

  (i)   subsection   974 - 75(6) applies to the interest in relation to a particular income year;

  (ii)   that subsection does not apply to the interest in relation to the next income year;

  (iii)   the interest is an equity interest in the company at the time (the change time ) that is the start of that next income year.

  (2)   The account continues in existence even if the company ceases to have any * non - share equity interests on issue.

  (3)   The balance of the account cannot fall below nil.

  (4)   The only credits and debits that may be made to the account are those provided for in sections   164 - 15 and 164 - 20.