INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 (ARCHIVE)

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 373 - Intellectual property  

SECTION 373-65 (ARCHIVE)   Effect on balancing adjustment if there has been roll-over relief under the old law only  

373-65(1)    
If:

(a) in the 1997-98 income year or an earlier income year roll-over relief was available under section 124PA of the Income Tax Assessment Act 1936 in relation to the disposal of an item of intellectual property by a taxpayer (the transferor ) to another taxpayer (the transferee ); and

(b) a balancing adjustment is required for the item for the 1998-99 income year or a later income year; and

(c) there has been no earlier balancing adjustment event for the item for which roll-over relief was available under Common rule 1;

the balancing adjustment is affected in 2 ways.

373-65(2)    
First:

(a) the total amounts that the transferor deducted or could deduct for the item under Division 10B of Part III of the Income Tax Assessment Act 1936 ; or

(b) if there have been 2 or more prior applications of section 124PA of that Act to the item - the total amounts that the prior transferors deducted or could deduct for the item under that Division;

are taken to have been amounts that the transferee deducted or could deduct for the item under that Division.

373-65(3)    
Second:

(a) the total amounts included in the transferor's assessable income under Division 10B of Part III of the Income Tax Assessment Act 1936 because of the item; or

(b) if there have been 2 or more prior applications of section 124PA of that Act to the item - the total amounts included under that Division in the assessable income of the prior transferors because of the item;

are taken to have been amounts included in the transferee's assessable income under that Division because of the item.