Income Tax Assessment Act 1936
View history note
Hide history noteDiv 3 heading inserted by No 172 of 1978.
(Repealed by No 93 of 2011)
S 73E repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011. For application, savings and transitional provisions see note under s
82KZLB
. S 73E formerly read:
S 73E(1A) inserted by No 169 of 1999. This section applies to the disposal of a unit of plant by an eligible company (in this section called the
transferor
) to another eligible company (in this section called the
transferee
) if:
S 73E(1) amended by
No 101 of 2006
, s 3 and Sch 2 item 252, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
. S 73E(1) amended by No 117 of 2002, No 77 of 2001, No 46 of 1998 and No 121 of 1997.
SECTION 73E SECTION 73B ROLL-OVER RELIEF ON DISPOSAL OF UNIT OF PLANT TO ANOTHER MEMBER OF SAME WHOLLY-OWNED GROUP
73E(1A)
This section does not apply in respect of a disposal in respect of which Subdivision
170-D
of the
Income Tax Assessment Act 1997
applies.
73E(1)
Roll-over relief where CGT roll-over relief allowed.
(a)
the disposal involves a CGT event for which there is a roll-over under Subdivision
126-B
of the
Income Tax Assessment Act 1997
, as in force before the amendments made to that Subdivision by the
New Business Tax System (Consolidation) Act (No. 1) 2002
(or would be, disregarding the exemption in section 118-5 of that Act, so far as it relates to a car, motor cycle or similar vehicle, or to an interest in one); and
(b)
subject to subsection (11), a deduction or deductions have been allowed or are allowable under subsection
73B(15)
to the transferor in respect of the unit; and
(c)
no deduction has been allowed or is allowable under the former section 54 of this Act or the former Division 42 (Depreciation) or Subdivision
40-B
(Capital allowances) of the
Income Tax Assessment Act 1997
to the transferor in respect of the unit.
73E(2) No balancing charges.
Subsection 73B(23) or (24), as the case requires, does not apply in respect of the disposal of the unit by the transferor.
73E(3) No deduction for decline in value for transferor in year of disposal.
A deduction under the former Division 42 (Depreciation) or Subdivision 40-B (Capital allowances) of the Income Tax Assessment Act 1997 is not allowable to the transferor in respect of the unit in relation to the year of income in which the disposal took place.
S 73E(3) substituted by No 77 of 2001 and No 121 of 1997.
73E(4) Subsection 73B(4) definition of qualifying plant expenditure not applicable to transferee.
Subsection 73B(4) does not apply to the transferee in relation to the unit.
73E(5) Transferee to inherit transferor ' s qualifying plant expenditure.
If:
(a) immediately after the disposal took place, the transferee commences to use the unit exclusively for the purpose of the carrying on by or on behalf of the transferee of research and development activities; and
(b) apart from the disposal, there would have been an amount of qualifying plant expenditure in relation to the transferor in relation to:
(i) the year of income of the transferor in which the disposal took place; or
(ii) the first subsequent year of income of the transferor;
then:
(c) subject to subsection 73B(5) , section 73B and this section have effect as if an amount equal to that amount were taken:
(i) to have been incurred by the transferee in the acquisition of the unit; and
(ii) to be an amount of qualifying plant expenditure in relation to the transferee in relation to:
(A) if subparagraph (b)(i) applies - the year of income of the transferee in which the disposal took place; and
(B) if subparagraph (b)(ii) applies - the first subsequent year of income of the transferee; and
(d) a reference in subsection 73B(21) to the end of the second year of income after the year of income in which the transferee first used the unit exclusively for the purpose of the carrying on by or on behalf of the transferee of research and development activities is to be read as a reference to the end of the 3-year period commencing at the beginning of:
(i) the year of income in which the transferor first used the unit exclusively for the purpose of the carrying on by or on behalf of the transferor of research and development activities; or
(ii) if there have been 2 or more prior successive applications of this section - the earliest year of income in which a prior successive transferor first used the unit exclusively for the purpose of the carrying on by or on behalf of the prior successive transferor of research and development activities; and
(e) the reference in subsection 73B(22) to deductions having been allowed to the transferee under subsection 73B(15) in relation to the unit in respect of 3 years of income is to be read as a reference to deductions having been allowed to the transferee under subsection 73B(15) in relation to the unit in respect of 3 years of income, reduced by one year for each year of income for which a deduction was allowed or allowable under subsection 73B(15) to:
(i) the transferor in respect of the unit; or
(ii) if there have been 2 or more prior successive applications of this section - any of the prior successive transferors in respect of the unit.
73E(6) Modification of capital allowance provisions applicable to transferee.
If a deduction is or becomes allowable to the transferee for the decline in value of the unit, the provisions of Division 40 (Capital allowances) of the Income Tax Assessment Act 1997 apply as if:
(a) the transferee had acquired the unit for a cost equal to the modified written-down value of the unit; and
(b) subsection 73B(21) and (22) had effect as if a reference in those subsections to the written-down value of the unit were a reference to the modified written-down value of the unit; and
(c) in relation to the year of income of the transferee in which the disposal took place, the component " days held " in the formula in section 40-70 or 40-75 of the Income Tax Assessment Act 1997 included the number of days in that year when the transferor both:
(i) held the unit within the meaning of Division 40 of the Income Tax Assessment Act 1997 ; and
(ii) used it for a taxable purpose within the meaning of that Division or had it installed ready for use for that purpose.
S 73E(6) substituted by No 77 of 2001 and No 121 of 1997.
73E(7) Disposal by transferee where no roll-over relief - inheritance of transferor ' s cost and deductions.
If:
(a) after the disposal of the unit to the transferee, the unit is lost or destroyed or the transferee disposes of the unit; and
(b) in the case of a disposal by the transferee - this section does not apply to the disposal;
then, for the purposes of the application of subsection 73B(23) or (24) , as the case may be, in relation to the loss, destruction or disposal, those subsections have effect as if:
(c) a reference in those subsections to the written-down value of the unit were a reference to the modified written-down value of the unit; and
(d) a reference in those subsections, and in the definition of ineligible pilot plant amount in subsection 73B(1) , to the cost of the unit were a reference to:
(i) the cost of the unit to the transferor (worked out as if subsection 73B(6) had not been enacted); or
(ii) if there have been 2 or more prior successive applications of this section - the cost of the unit to the earliest prior successive transferor (worked out as if subsection 73B(6) had not been enacted); and
(e) a reference in paragraph 73B(24)(f) to a year of income in respect of which a deduction has been allowed under section 73B to the transferee in respect of the unit were worked out on the basis that whichever of the following is applicable:
(i) the deductions allowed or allowable to the transferor under section 73B in respect of one or more years of income in relation to the unit;
had been deductions allowed or allowable to the transferee under section 73B in respect of the years of income in relation to the unit.
(ii) if there have been 2 or more prior successive applications of this section - the deductions allowed or allowable to the prior successive transferors under section 73B in respect of one or more years of income in relation to the unit;
73E(8) Meaning of modified written-down value .
For the purposes of the application of subsections (6) and (7) to the transferee, the modified written-down value of the unit is the amount that would have been the written-down value if:
(a) whichever of the following is applicable:
(i) the deductions allowed or allowable to the transferor under section 73B in respect of one or more years of income in relation to the unit;
had been deductions allowed or allowable to the transferee under section 73B in respect of the years of income in relation to the unit; and
(ii) if there have been 2 or more prior successive applications of this section - the deductions allowed or allowable to the prior successive transferors under section 73B in respect of one or more years of income in relation to the unit;
(b) whichever of the following is applicable:
(i) the cost of the unit to the transferor (worked out as if subsection 73B(6) had not been enacted);
had been the cost of the unit to the transferee.
(ii) if there have been 2 or more prior successive applications of this section - the cost of the unit to the earliest prior successive transferor (worked out as if subsection 73B(6) had not been enacted);
73E(9) Pilot plant covered by subsection 73B(6) .
If subsection 73B(6) applied to the unit in relation to the transferor, section 73B and this section have effect as if subsection 73B(6) applies to the unit in relation to the transferee.
73E(10) Recoupment of expenditure - consequential amendment of assessments.
Section 170 does not prevent the amendment at any time of an assessment of the transferee where section 73C or 73CB has applied to:
(a) the transferor in respect of the unit; or
(b) if there have been 2 or more prior successive applications of this section - any of the prior successive transferors in respect of the unit.
S 73E(10) amended by No 101 of 2006 , s 3 and Sch 2 item 253, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
73E(11) Second or subsequent application of section - paragraph (1)(b) does not apply.
If, apart from this subsection, this section has applied to the disposal of the unit to the transferee, then, in working out whether this section applies to a subsequent disposal of the unit by:
(a) the transferee; or
(b) one or more subsequent successive transferees;
this section has effect as if paragraph (1)(b) (which deals with deductions) had not been enacted.
73E(12)
(Repealed by No 46 of 1998)
73E(13) Interpretation.
For the purposes of interpretation, this section is to be construed as if it were part of section 73B .
73E(14) Definition.
In this section:
modified written-down value
has the meaning given by subsection (8).
Former s 73E inserted by No 224 of 1992.
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