Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-J - CGT events relating to roll-overs  

SECTION 104-180   Sub-group break-up  

104-180(1)    
The condition in subsection (2) must have been satisfied at each time when there is a roll-over within the *wholly-owned group under Subdivision 126-B for a *CGT event happening in relation to the roll-over asset.

104-180(2)    
The originating company and the recipient company must have been members of a group of 2 or more companies (the sub-group ) within the *wholly-owned group (excluding the ultimate holding company) for which one of these is satisfied:

(a) if the sub-group consists of 2 companies, either the recipient company is a 100% subsidiary of the other company (the holding company ), or the other company is a 100% subsidiary of the recipient company (also the holding company );

(b) if the sub-group consists of 3 or more companies:

(i) the recipient company is a 100% subsidiary of one of those other companies (also the holding company ) and so are the other companies (except the holding company) in the sub-group; or

(ii) each of the companies in the sub-group (except the recipient company) is a 100% subsidiary of the recipient company (also the holding company ).

104-180(3)    
If the roll-over event was the last in a series of *CGT events involving the roll-over asset and there was a roll-over within the *wholly-owned group under Subdivision 126-B for all the events, each company that was the originating company or the recipient company for the purposes of that Subdivision for one of those roll-overs must have been members of the sub-group at the time of each of the roll-overs.

104-180(4)    
The conditions in subsection (5) or (6) must be satisfied just after the break-up time.

104-180(5)    
If the recipient company was the holding company of the sub-group, none of its *shares can be owned by:

(a) the ultimate holding company; or

(b) a company that is a *100% subsidiary of the ultimate holding company just after the break-up time.

104-180(6)    
If the recipient company was not the holding company of the sub-group, no *shares in it or in the holding company can be owned by:

(a) the ultimate holding company; or

(b) a company that is a *100% subsidiary of the ultimate holding company just after the break-up time.