Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 58 - Capital allowances for depreciating assets previously owned by an exempt entity  

Subdivision 58-A - Application  

SECTION 58-5   Application of Division  

58-5(1)    
This Division applies in 2 situations.

Entity sale

58-5(2)    
The first (an entity sale situation ) is where:

(a) at a particular time on or after 1 July 2001, an entity is an *exempt entity; and

(b) just after that time, the entity's *ordinary income or *statutory income becomes to any extent assessable income.

58-5(3)    
In an entity sale situation:

(a) the entity is a transition entity ; and

(b) the time when the entity's *ordinary income or *statutory income becomes to that extent assessable is the transition time ; and

(c) the income year in which the *transition time occurs is the transition year for the entity; and

(d) the *depreciating assets the *transition entity *held just before the transition time are privatised assets .

Asset sale

58-5(4)    
The second (an asset sale situation ) is where:

(a) at a particular time on or after 1 July 2001, an entity (the purchaser ) whose *ordinary income or statutory income is to any extent assessable acquires a *depreciating asset from the Commonwealth, a State, a Territory or an *exempt entity; and

(b) the asset is acquired in connection with the acquisition of a *business from the Commonwealth, the State, the Territory or the exempt entity.

58-5(5)    
In an asset sale situation:

(a) the Commonwealth, the State, the Territory or the *exempt entity is the tax exempt vendor ; and

(b) the time when the *depreciating asset is acquired is the acquisition time ; and

(c) the income year in which the *acquisition time occurs is the acquisition year ; and

(d) each *depreciating asset the purchaser acquires from the *tax exempt vendor at the acquisition time is a privatised asset .