INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZPAA   EXCHANGE OF UNITS IN THE SAME UNIT TRUST  

160ZZPAA(1)   [Application of section]  

This section applies where:

(a) after 28 January 1988, the trustee of a unit trust redeems or cancels all the units of a particular class in the unit trust;

(b) a taxpayer holds units of that class in the unit trust (in this section called the ``original units'' );

(c) the taxpayer is a resident of Australia or the redemption or cancellation constitutes a disposal of a taxable Australian asset;

(d) the trustee of the unit trust issues to the taxpayer other units in the unit trust (in this section called the ``new units'' ) in substitution for the original units;

(e) the market value of the new units immediately after they were issued is not less than the market value of the original units immediately before the redemption or cancellation;

(f) the taxpayer did not receive any consideration other than the new units because of the redemption or cancellation; and

(g) the taxpayer has elected that this section is to apply in respect of the redemption or cancellation.

160ZZPAA(2)   [Application of Pt IIIA]  

This Part (other than this section) does not apply in respect of the redemption or cancellation and:

(a) if the original units were acquired by the taxpayer before 20 September 1985 - the taxpayer shall be taken to have acquired the new units before that date; or

(b) if the original units were acquired by the taxpayer on or after 20 September 1985 - the taxpayer shall be taken to have paid as consideration in respect of the acquisition of the new units an amount equal to:

(i) for the purpose of ascertaining whether a capital gain accrued to the taxpayer in the event of a subsequent disposal of the new units by the taxpayer - the amount that would have been the indexed cost base to the taxpayer of the original units for the purposes of this Part if this Part had applied in respect of the disposal of the original units by the taxpayer; or

(ii) for the purpose of ascertaining whether the taxpayer incurred a capital loss in the event of a subsequent disposal of the new units by the taxpayer - the amount that would have been the reduced cost base to the taxpayer of the original units for the purposes of this Part if this Part had applied in respect of the disposal of the original units by the taxpayer.

160ZZPAA(3)   [New units disposed of by taxpayer within 12 months original units acquired]  

If, in a case to which paragraph (2)(b) applies, the new units were disposed of by the taxpayer within 12 months after the day on which the original units were acquired by the taxpayer, the reference in that paragraph to the indexed cost base to the taxpayer of the original units shall be read as a reference to the cost base to the taxpayer of the original units.

160ZZPAA(4)   [Election]  

An election by a taxpayer under subsection (1) shall be made by notice in writing given to the Commissioner on or before the date of lodgment of the return of income of the taxpayer for the year of income in which the redemption or cancellation concerned took place, or within such further period as the Commissioner allows.