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OF 2: ASC accounts
or “Rules for companies with Available Subscribed Capital (ASC) accounts”
You could also call this:

“How certain companies can choose to become ASC account companies and what it means”

If you are a company that is a public unit trust or a group investment fund earning category A income, you can choose to become an ASC account company. To do this, you need to have issued shares that can only be redeemed under the rules in section CD 22(4).

When you decide to become an ASC account company, you must tell the Commissioner about your choice. You need to do this by the time you have to file your tax return for the tax year when you made the choice.

Once you become an ASC account company, you have to keep an ASC account. This account needs to be set up from the day you choose to become an ASC account company. The rules for this account are explained in section OF 1(2).

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Next up: OF 4: ASCA redemption credit

or “Credit received when redeeming a share in your company with Available Subscribed Capital”
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Part O Memorandum accounts
Available subscribed capital accounts (ASCA)

OF 3Choosing to become ASC account company

  1. A company may choose to become an ASC account company if—

  2. it is a public unit trust or a group investment fund that derives category A income; and
    1. it has issued shares on terms that their redemption will be subject to section CD 22(4) (Returns of capital: off-market share cancellations).

      1. A company that makes an election under subsection (1) must notify the Commissioner of the election no later than the day on which the company is required to file a return of income for the tax year that corresponds to the income year in which the election is made.

      2. An ASC account company must maintain the ASC account referred to in section OF 1(2) from the day the company chooses to become an ASC account company.

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