Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

Division 723 - Direct value shifting by creating right over non-depreciating asset  

Subdivision 723-B - Reducing reduced cost base of interests in entity that acquires non-depreciating asset under roll-over  

SECTION 723-110   Direct and indirect roll-over replacement for underlying asset  

723-110(1)    
For an entity (the transferor ) that owns a ^* CGT asset, the CGT asset is a direct roll-over replacement for something (the underlying asset ) that another entity owns if, and only if:

(a) a ^* CGT event happened to the underlying asset while the transferor owned it; and

(b) the other entity ^* acquired the underlying asset as a result of that CGT event; and

(c) there was a ^* replacement-asset roll-over for the CGT event; and

(d) the transferor received the CGT asset (or CGT assets including it) in respect of the CGT event as the replacement asset (or the replacement assets).

723-110(2)    

For an entity (the transferor ) that owns a ^* CGT asset, the CGT asset is an indirect roll-over replacement for something (the underlying asset ) that another entity owns if, and only if:

(a) a ^* CGT event happened to another CGT asset at a time when the transferor owned it and the other entity already owned the underlying asset; and

(b) for the transferor, the other CGT asset was at that time:

(i) a ^* direct roll-over replacement for the underlying asset; or

(ii) an indirect roll-over replacement for the underlying asset because of any other application or applications of this subsection; and

(c) there was a ^* replacement-asset roll-over for the CGT event; and

(d) the transferor received the first CGT asset (or CGT assets including it) in respect of the CGT event as the replacement asset (or the replacement assets).