INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10AAA - Transport of minerals and quarry materials  

Subdivision B - Transport of quarry materials  

SECTION 123BF   ROLL-OVER RELIEF WHERE CGT ROLL-OVER RELIEF ALLOWED UNDER SECTION 160ZZM, 160ZZMA, 160ZZN, 160ZZNA OR 160ZZO OR WHERE ELECTION FOR ROLL-OVER RELIEF MADE UNDER SECTION 123F  

123BF(1)   Roll-over relief where CGT roll-over relief allowed.  

This section applies to the disposal of property before the 1997-98 year of income by a taxpayer (in this section called the transferor ) to another taxpayer (in this section called the transferee ) if:

(a) either:

(i) in a case where the transferor is not a partnership - section 160ZZM , 160ZZMA, 160ZZN or 160ZZO applies to the disposal of the property by the transferor; or

(ii) if the transferor is a partnership - the property is partnership property of the partnership and section 160ZZNA applies to the corresponding disposal, by all of the partners in the partnership, of their interests in the property; and

(b) subject to subsection (9), deductions have been allowed or are allowable under this Subdivision to the transferor in respect of the property.

Note:

Common rule 1 in Subdivision 41-A of the Income Tax Assessment Act 1997 sets out when roll-over relief is available in relation to the disposal of property in the 1997-98 year of income or a later year of income by a taxpayer to another taxpayer.

123BF(2)   Roll-over relief where joint election made under section 123F .  

This section also applies if a joint election for roll-over relief is made under subsection 123F(2A) by both the transferor and the transferee referred to in that subsection in relation to the disposal of property before the 1997-98 year of income.

Note:

Common rule 1 in Subdivision 41-A of the Income Tax Assessment Act 1997 sets out when a joint election for roll-over relief may be made in relation to the disposal of property in the 1997-98 year of income or a later year of income.

123BF(3)   No balancing charges or deductions.  

Section 123C (which deals with balancing charges and deductions) does not apply to the disposal of the property by the transferor.

123BF(4)   Transferee to inherit certain characteristics from transferor.  

This Subdivision and Subdivision C (to the extent to which it relates to this Subdivision) apply as if:

(a) the transferee had acquired the property for a consideration equal to so much of the capital expenditure of the transferor in respect of the property as is expenditure to which this Subdivision applies; and

(b) deductions were not allowable to the transferee under this Subdivision in respect of:

(i) so much of the capital expenditure of the transferor in respect of the property as was allowed or allowable as a deduction to the transferor under this Subdivision; or

(ii) if there have been 2 or more prior successive applications of this section - so much of the capital expenditure in respect of the property as was allowed or allowable as a deduction to the prior successive transferors under this Subdivision; and

(c) the 20-year period referred to in subsection 123BE(1) over which the transferee would otherwise be allowed deductions in respect of the property were reduced by one year for each year of income for which a deduction was allowed or allowable under this Subdivision to:

(i) the transferor in respect of the property; or

(ii) if there have been 2 or more prior successive applications of this section - any of the prior successive transferors in respect of the property.

123BF(5)   Recoupment of expenditure - consequential amendment of assessments.  

Section 170 does not prevent the amendment at any time of an assessment of the transferee where subsection 123BD(4) has applied to:

(a) the transferor in respect of the property; or

(b) if there have been 2 or more prior successive applications of this section - any of the prior successive transferors in respect of the property.

123BF(6)   Disposal by transferee where no roll-over relief - inheritance of deductions.  

If:

(a) after the disposal of the property to the transferee:

(i) the property is lost or destroyed; or

(ii) the transferee disposes of the property; or

(iii) the use of the property by the transferee primarily and principally for a purpose referred to in section 123BD is otherwise terminated; and

(b) in the case of a disposal by the transferee - this section does not apply to the disposal;

then, for the purposes of the application of section 123C in relation to the loss, destruction, disposal or termination, the total of:

(c) the deductions allowed or allowable to the transferor under this Subdivision in relation to the property; and

(d) if there have been 2 or more prior successive applications of this section - the deductions allowed or allowable to the prior successive transferors under this Subdivision in relation to the property;

are taken to have been deductions allowed or allowable to the transferee under this Subdivision in relation to the property.

123BF(7)   Disposal by transferee where no roll-over relief - inheritance of total expenditure of a capital nature.  

In spite of subsection (4), if:

(a) after the disposal of the property to the transferee:

(i) the property is lost or destroyed; or

(ii) the transferee disposes of the property; or

(iii) the use of the property by the transferee primarily and principally for a purpose referred to in section 123BD is otherwise terminated; and

(b) in the case of a disposal by the transferee - this section does not apply to the disposal;

then, for the purposes of the application of section 123C in relation to the loss, destruction, disposal or termination, the total expenditure of a capital nature of the transferee in respect of the property is to be worked out as if the rule set out in subsection (8) had been applicable to:

(c) the disposal of the property by the transferor to the transferee; and

(d) if there have been 2 or more prior successive applications of this section - each prior successive disposal.

123BF(8)   Rule referred to in subsection (7).  

The rule referred to in subsection (7) is that the transferee had acquired the property for a consideration equal to the total expenditure of a capital nature of the transferor in respect of the property.

123BF(9)   Second or subsequent application of section - paragraph (1)(b) does not apply.  

If, apart from this subsection, this section has applied to the disposal of the property to the transferee, then, in working out whether this section applies to a subsequent disposal of the property by:

(a) the transferee; or

(b) one or more subsequent successive transferees;

this section has effect as if paragraph (1)(b) (which deals with deductions) had not been enacted.