Section 124ZR — Income Tax Assessment Act 1936: Effect of company ceasing to be a PDF

(1) This section applies to shares in a company that a taxpayer holds when the company ceases to be a PDF. (2) For the purposes of this Act (except Parts 3-1 and 3-3 (about CGT) of the Income Tax Assessment Act 1997), the taxpayer is taken: (a) to have sold the shares immediately before the company ceased to be a PDF; and (b) to have rebought the shares immediately after the company so ceased; for a consideration equal to the market value of the shares immediately after the company so ceased. (3) Parts 3-1 and 3-3 (about CGT) of the Income Tax Assessment Act 1997 apply as if the taxpayer: (a) had disposed of the CGT assets constituted by the shares, and had done so immediately before the company ceased to be a PDF; and (b) had re-acquired those assets immediately afterwards; for an amount equal to the shares’ market value immediately after the company so ceased.