New Business Tax System (Consolidation) Act (No. 1) 2002 (68 of 2002)

Schedule 3   Consequential amendments relating to main consolidation provisions

Part 3   Limiting access to group concessions

Division 1   CGT roll-overs

Income Tax Assessment Act 1997

22   At the end of section 126-50

Add:

(6) If at the time of the trigger event:

(a) the originating company or the recipient company is an Australian resident; and

(b) that company is a *member of a *consolidatable group;

that company must also at that time be a member of a *consolidated group or *MEC group.

(7) If the originating company is a foreign resident, it must not have *acquired the *CGT asset described in subsection (8) because of:

(a) a single *CGT event giving rise to a roll-over under a previous application of this Subdivision (as amended by the New Business Tax System (Consolidation) Act (No. 1) 2002) involving an Australian resident originating company other than the company that is the recipient company for the current application of this Subdivision; or

(b) a series (whether or not it is the longest possible series) of consecutive CGT events giving rise to roll-overs under previous applications of this Subdivision (as amended by the New Business Tax System (Consolidation) Act (No. 1) 2002), the earliest involving an Australian resident originating company other than the company that is the recipient company for the current application of this Subdivision.

(8) Subsection (7) operates in relation to the *CGT asset:

(a) that was involved in the trigger event in a disposal case; or

(b) because of which the originating company was able to create the CGT asset that was involved in the trigger event in a creation case.

(9) Subsection (7) does not apply if each of the following companies mentioned in that subsection:

(a) the recipient company for the roll-over under the current application of this Subdivision;

(b) the Australian resident originating company for the roll-over under:

(i) for paragraph (7)(a) - the previous application of this Subdivision; or

(ii) for paragraph (7)(b) - the earliest previous application of this Subdivision for that series of consecutive *CGT events;

was, at the time of its roll-over, the *head company of the same *MEC group.