Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section modifies how the ownership tests in section 166 - 145 are applied to the tested company if a * widely held company directly or indirectly (through one or more interposed entities), or both directly and indirectly, holds any of the following:
(a) a * voting stake that carries rights to between 10% and 50% (inclusive) of the voting power in the company;
(b) a * dividend stake that carries the right to receive between 10% and 50% (inclusive) of any dividends that the company may pay;
(c) a * capital stake that carries the right to receive between 10% and 50% (inclusive) of any distribution of capital of the company.
Note 1: Other rules might affect this provision: see subsections (3) and (4) and sections 166 - 272, 166 - 275 and 166 - 280.
Note 2: Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.
(2) The tests are applied to the tested company as if, at the * ownership test time:
(a) if the stake is a * voting stake--the * widely held company controls, or is able to control, the voting power in the tested company that is carried by that stake at that time; and
(b) if the stake is a * dividend stake--the widely held company had the right to receive (whether directly or * indirectly), for its own benefit, any * dividends the tested company may pay in respect of that stake at that time; and
(c) if the stake is a * capital stake--the widely held company had the right to receive (whether directly or indirectly), for its own benefit, any distributions of capital of the tested company in respect of that stake at that time; and
(d) in any case--the widely held company were a person (other than a company).
Note: The persons who actually control the voting power and have rights to dividends and capital are taken not to control that power or have those rights: see section 166 - 265.
Exception
(3) This section does not apply in respect of a * widely held company if the company is not a widely held company for the whole income year in which the * ownership test time occurs.
Note: See section 165 - 255 for the rule about incomplete periods.
Acquisition of widely held company by another entity
(4) If:
(a) a new company acquires all the * shares in the * widely held company; and
(b) immediately before the acquisition, the shares in the widely held company were listed for quotation in the official list of an * approved stock exchange; and
(c) immediately after the acquisition, the shares in the new company are listed for quotation in the official list of an approved stock exchange; and
(d) the new company has the same classes of shares (not being * redeemable shares) as the widely held company; and
(e) each entity that held stakes in the widely held company immediately before the acquisition holds the same proportion of the total * voting stakes, * dividend stakes or * capital stakes in the new company immediately after the acquisition as the entity held in the widely held company immediately before the acquisition;
then, at all times that the widely held company held or is taken to have held a stake in the tested company, the new company is taken to have held that stake.
(5) Except for the purposes of determining whether a time is an alteration time (within the meaning of section 165 - 115L), section 166 - 272 (which is about same shares or interests) is to be disregarded when applying subsection (4).