6‑50 Transfer of Ownership Interests tre6‑50 Transfer of Ownership Interests treated as transfer of assets and liabilities

6‑50 Transfer of Ownership Interests treated as transfer of assets and liabilities

(1) Subsections (2) and (3) apply if: (a) there is an acquisition or disposal of a Controlling Interest in a Constituent Entity (the target); and (b) the following jurisdiction treats that acquisition or disposal in the same or similar manner as an acquisition or disposition of the assets and liabilities of the target: (i) unless subparagraph (ii) applies—the jurisdiction in which the target is located; (ii) if the target is a Tax Transparent Entity—the jurisdiction in which those assets are located; and (c) that jurisdiction imposes a Covered Tax on the person disposing of the Controlling Interest based on the difference between: (i) the tax basis of those assets and liabilities; and (ii) the consideration paid in exchange for the Controlling Interest, or the fair value of the assets and liabilities. (2) Division 1 of this Part does not apply in relation to the acquisition or disposal of the Controlling Interest. (3) For the purposes of this instrument, treat the acquisition or disposal of the Controlling Interest as an acquisition or disposal of the assets and liabilities of the target.

Note: For acquisitions and disposals of assets and liabilities, see Part 6‑3.