Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-N - Disposal of assets by a trust to a company  

Operative provisions

SECTION 124-855   What this Subdivision deals with  

124-855(1)    
A roll-over may be available for a restructuring (a trust restructure ) if:

(a) a trust, or 2 or more trusts, (the transferor ) *dispose of all of their *CGT assets to a company limited by *shares (the transferee ); and

(b) *CGT event E4 is capable of applying to all of the units and interests in the transferor; and

(c) the requirements in section 124-860 are met.

Note:

A roll-over is not available for a restructure undertaken by a discretionary trust.

124-855(2)    
For 2 or more transferors, units and interests in each transferor must be owned in the same proportions by the same beneficiaries.

Example:

Matthew and Jaclyn each own 50% of the units in the Spring Unit Trust and the Dale Unit trust. All of the assets of both trusts are disposed of to Jonathon Pty Ltd. A roll-over for a trust restructure is available if the other requirements of this Subdivision are met.