CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-3
-
CAPITAL GAINS AND LOSSES: SPECIAL TOPICS
History
Part 3-3 inserted by No 46 of 1998.
Division 124
-
Replacement-asset roll-overs
History
Div 124 inserted by No 46 of 1998.
Subdivision 124-I
-
Change of incorporation
History
History
S 124-520(2) amended by
No 58 of 2006
.
S 124-520(3) renumbered as s 124-520(2) by No 41 of 2005.
S 124-520(2) repealed by No 41 of 2005 and amended by No 55 of 2001.
S 124-520(3) inserted by No 103 of 1999.
S 124-520 inserted by No 46 of 1998.
Subdiv 124-I substituted by No 12 of 2012, s 3 and Sch 2 item 15, effective 21 March 2012. Subdiv 124-I formerly read:
Subdivision 124-I
-
Conversion of a body to an incorporated company
SECTION 124-520 Conversion of a body to an incorporated company
124-520(1)
You can choose to obtain a roll-over if:
(a)
you are a member of a body that is incorporated under a law (other than the
Corporations Act 2001
or a similar *foreign law relating to companies); and
(b)
the body is converted into a company incorporated under the
Corporations Act 2001
or a similar foreign law relating to companies (without creating a new legal entity); and
(c)
the company issues you with *shares (and you receive nothing else) in substitution for your interest in the body just before the conversion; and
(d)
there is no significant difference in:
(i)
the ownership of the body just before the conversion and the ownership of the company just after the conversion; or
(ii)
the mix of ownership of the body just before the conversion and the mix of ownership of the company just after the conversion; and
(e)
this requirement is satisfied:
(i)
you are an Australian resident at the time of the conversion; or
(ii)
if you are a foreign resident at that time
-
your interest in the body was *taxable Australian property just before that time and the *shares are taxable Australian property when they are issued.
Note 1:
The roll-over consequences are set out in Subdivision
124-A
. The original asset is your interest in the body. The new asset is your shares in the company.
Note 2:
Section 103-25 tells you when you have to make the choice.
History
S 124-520(1) amended by
No 168 of 2006
, s 3 and Sch 4 item 58, by substituting
"
was *taxable Australian property just before that time and the *shares are taxable Australian property when they are issued
"
for
"
has the *necessary connection with Australia
"
in para (e)(ii), applicable to CGT events that happen on or after 12 December 2006.
S 124-520(1) amended by No 41 of 2005.
124-520(2)
This section does not apply if the body is a mutual entity that is being demutualised and to whose demutualisation Division 326 in Schedule
2H
of the
Income Tax Assessment Act 1936
applies.
History
S 124-520(2) amended by
No 58 of 2006
, s 3 and Sch 7 item 77, by inserting
"
in Schedule 2H
"
after
"
Division 326
"
, effective 22 June 2006.
S 124-520(3) renumbered as s 124-520(2) by No 41 of 2005.
S 124-520(2) repealed by No 41 of 2005 and amended by No 55 of 2001.
S 124-520(3) inserted by No 103 of 1999.
S 124-520 inserted by No 46 of 1998.
Special consequences of some roll-overs
SECTION 124-530
Shares in company replacing pre-CGT and post-CGT mix of interest and rights in body
124-530(1)
This section applies if:
(a)
you choose to obtain a roll-over under section
124-520
or
124-525
relating to *shares you have in the company on account of the following (your
original assets
):
(i)
your interest in the body mentioned in that section;
(ii)
your other rights relating to the body mentioned in that section; and
(b)
you *acquired some of your original assets before 20 September 1985 and the rest of them on or after that day.
124-530(2)
You are taken to have *acquired so many of the *shares before 20 September 1985 as is reasonable, having regard to:
(a)
the number and *market value of your original assets; and
(b)
the number and market value of the shares.
124-530(3)
The first element of the *cost base of each of the *shares not taken by subsection (2) to have been *acquired before 20 September 1985 (your
post-CGT shares
) is such amount as is reasonable having regard to:
(a)
the total of the cost bases of your original assets that you acquired on or after 20 September 1985; and
(b)
the number and *market value of your post-CGT shares.
124-530(4)
The reduced cost base of each of your post-CGT shares is worked out similarly.
124-530(5)
This section has effect despite subsections
124-15(5)
and
(6)
.
History
S 124-530 inserted by No 12 of 2012, s 3 and Sch 2 item 15, effective 21 March 2012.