Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 166.145

             (1)  There is substantial continuity of ownership of the company as between the start of the * test period and another time in the test period if (and only if) the conditions in this section are met.

Note:          Section 166-165, and Subdivision 166-E, affect how this section is applied.

Voting power

             (2)  There must be persons (none of them companies or trustees) who had * more than 50% of the voting power in the company at the start of the * test period. Also, those persons must have had * more than 50% of the voting power in the company immediately after the other time in the test period.

Note:          To work out who had more than 50% of the voting power, see section 165-150.

Rights to dividends

             (3)  There must be persons (none of them companies) who had rights to * more than 50% of the company's dividends at the start of the * test period. Also, those persons must have had rights to * more than 50% of the company's dividends immediately after the other time in the test period.

Note:          To work out who had rights to more than 50% of the company's dividends, see section 165- 155.

Rights to capital distributions

             (4)  There must be persons (none of them companies) who had rights to * more than 50% of the company's capital distributions at the start of the * test period. Also, those persons must have had rights to * more than 50% of the company's capital distributions immediately after the other time in the test period.

Note:          To work out who had rights to more than 50% of the company's capital distributions, see section 165-160.

When to apply the test

             (5)  To work out whether a condition in this section was satisfied at a time (the ownership test time ), apply the alterative test for that condition.

Note:          For the alternative test, see subsections 165-150(2), 165- 155(2) and 165-160(2).

Conditions in subsections (3) and (4) satisfied by non-profit and mutual companies

             (6)  If the company is:

                     (a)  a * non-profit company; or

                     (b)  a * mutual affiliate company; or

                     (c)  a * mutual insurance company;

during the whole of the * test period, the conditions in subsections (3) and (4) are taken to have been satisfied by the company.