INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZOC   DEFINITIONS USED IN SECTION 160ZZOB  

160ZZOC(1)   [Definitions]  

This section contains definitions of various expressions used in section 160ZZOB .

160ZZOC(2)   Overall notional gain on distributions.  

There is an overall notional gain on distributions to the transferee of the 160ZZO CGT assets in the course of the liquidation if:

(a) the sum of the notional gains (see subsection (3)) in respect of all of the distributions of 160ZZO CGT assets by the transferor to the transferee in the course of the liquidation;

exceeds:

(b) the sum of the notional losses (see subsection (4)) in respect of all such distributions.

The amount of the overall notional gain equals the excess.

160ZZOC(3)   Notional gain on distribution.  

There is a notional gain in respect of the distribution of a 160ZZO CGT asset if, disregarding section 160ZZO , a capital gain would have accrued to the transferor in respect of the distribution assuming it had received consideration for the distribution equal to the asset's market value at the time of the distribution.

160ZZOC(4)   Notional loss on distribution.  

There is a notional loss in respect of the distribution of a 160ZZO CGT asset if, disregarding section 160ZZO , a capital loss would have been incurred by the transferor in respect of the distribution assuming it had received consideration for the distribution equal to the asset's market value at the time of the distribution.

160ZZOC(5)   Overall notional loss on distributions.  

There is an overall notional loss on distributions to the transferee of the 160ZZO CGT assets in the course of the liquidation if:

(a) the sum of the notional losses in respect of all the distributions of 160ZZO CGT assets by the transferor to the transferee in the course of the liquidation;

exceeds:

(b) the sum of the notional gains in respect of all such distributions.

The amount of the overall notional loss equals the excess.

160ZZOC(6)   Overall actual gain on cancellations.  

An overall actual gain accrues to the transferor on the cancellation of the transferee's CGT shares if:

(a) the sum of the capital gains that accrue to it in respect of the cancellation, in the course of the liquidation, of all of the transferee's CGT shares;

exceeds:

(b) the sum of the capital losses that it incurs in respect of all such cancellations.

The amount of the overall actual gain equals the excess.

160ZZOC(7)   Overall actual loss on cancellation.  

An overall actual loss accrues to the transferor on the cancellation of the transferee's CGT shares if:

(a) the sum of the capital losses that accrue to it in respect of the cancellation, in the course of the liquidation, of all of the transferee's CGT shares;

exceeds:

(b) the sum of the capital gains that accrue to it in respect of all such cancellations.

The amount of the overall actual loss equals the excess.

160ZZOC(8)   Adjustment factor.  

The adjustment factor is the fraction worked out by dividing the number of the transferee's CGT shares by the number of the transferee's total shares.