INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 19A - Transfers of assets between companies under common ownership  

Subdivision C - Grouped assets  

SECTION 160ZZRDG   PRE-COMMON OWNERSHIP GROUPS  

160ZZRDG(1)   Assets that may be in pre-common ownership group.  

An asset can be allocated to a pre-common ownership group if:

(a) the asset was acquired by the transferor before the time at which the transferor and the transferee last came under common ownership; and

(b) the asset is the first asset to be allocated to the group or is disposed of to the transferee in the same year of income of the transferor as the year in which that asset is disposed of; and

(c) the original cost of the asset to the transferor was less than $1 million; and

(d) the asset is not land or a building.

160ZZRDG(2)   How and when section 160ZZRF applies to pre-common ownership groups.  

Section 160ZZRF applies to all of the assets in a pre-common ownership group in the way specified in subsection (3) if the sum of the consideration for the disposal of the assets in the group is less than the sum of the indexed common ownership market values of the assets in the group.

160ZZRDG(3)   [Grouped assets deemed one asset]  

Section 160ZZRF applies as if all of the grouped assets were one asset that:

(a) was acquired on or after 20 September 1985; and

(b) was disposed of at the earliest first asset disposal time for any asset in the group; and

(c) was disposed of for consideration equal to the sum of the consideration for the disposal of each of the assets; and

(d) had a market value at the common ownership time equal to the sum of the market values of the assets at that time.

In applying section 160ZZRF to the grouped assets the matters in subsection (6) of that section must be used to determine what amount is reasonable.