Income Tax Assessment Act 1936 (Archive)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17A - Roll-over relief for certain disposals of assets related to small businesses  

Subdivision B - How roll-over relief is available on the disposal of an asset  

SECTION 160ZZPXA   CHANGE OF CIRCUMSTANCES OF COMPANY OR UNIT TRUST  

160ZZPXA(1)   Change of circumstances to which section applies.  

This section applies if:

(a) there is a roll-over asset in respect of a taxpayer in respect of a year of income; and

(b) there is a net roll-over amount that applies to the taxpayer in respect of the year of income; and

(c) a replacement asset is nominated by the taxpayer under section 160ZZPT in respect of the net roll-over amount; and

(d) the replacement asset is a share in a company or a unit in a unit trust; and

(e) at a time (the change time ) after the taxpayer nominated the replacement asset:

(i) the taxpayer ceases to be the controlling individual of the company or trust; or

(ii) the total of the market values of the active assets of the company or trust falls below 80% of the total of the market values of all the assets owned by the company or the assets of the trust, as the case may be; or

(iii) the company ceases to be a private company that is a resident, the trust ceases to be a resident unit trust or the trust becomes a publicly traded unit trust, as the case may be; and

(f) the replacement asset is owned by the taxpayer immediately after the change time.

160ZZPXA(2)   Exception.  

Subparagraph (1)(e)(ii) does not apply if the total of the market values of the active assets referred to in that subparagraph fell below the percentage so referred to only because of changes in the market values of assets owned by the company or trust at the time of the nomination.

160ZZPXA(3)   Capital gain accrues when change of circumstances occurs.  

An amount (the adjustment amount ) equal to the amount that was apportioned to the asset by the taxpayer under section 160ZZPV or 160ZZPW, as the case may be, is taken to be a capital gain that accrued to the taxpayer in the year of income in which the relevant change time occurred.

160ZZPXA(4)   Consideration to be increased.  

The amount that, at the time of the acquisition of the asset, was the consideration in respect of the acquisition of the asset is increased, at the change time, by the adjustment amount.