Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS

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Division 104 - CGT events

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Subdivision 104-J - CGT events relating to roll-overs

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SECTION 104-190 Replacement asset period

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104-190(1A)

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If you choose a small business roll-over under Subdivision 152-E for a *CGT event that happens in relation to a *CGT asset in an income year, the replacement asset period is the period:

(a) starting one year before the last CGT event in the income year for which you obtain the roll-over; and

(b) ending at the later of:

(i) 2 years after that last CGT event; and

(ii) if the first-mentioned CGT event happened because you *disposed of the CGT asset - 6 months after the latest time a possible *financial benefit becomes or could become due under a *look-through earnout right relating to the CGT asset and the disposal.

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104-190(1)

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The replacement asset period is modified if your *capital proceeds for the *CGT event are increased under subsection 116-45(2) or 116-60(3) after the end of that period. Instead, you have until 12 months after you receive those additional proceeds to *acquire a replacement asset, or incur *fourth element expenditure in relation to a *CGT asset, or do both.

Note:

Section 116-45 applies if you do not receive your capital proceeds despite having taken all reasonable steps to get them, and section 116-60 applies if your capital proceeds are misappropriated by your employee or agent.

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104-190(2)

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The Commissioner may extend the replacement asset period , or that period as modified by subsection (1).

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History

S 104-190 substituted by No 55 of 2007 , s 3 and Sch 1 item 12, applicable to CGT events happening in the 2006-07 income year or later income years. S 104-190 formerly read:

SECTION 104-190 Change of circumstances where a share or interest is a replacement asset for a roll-over under Subdivision 152-E: CGT event J3
104-190(1)
CGT event J3 happens if you choose a *share in a company or an interest in a trust as a replacement asset for a roll-over under Subdivision 152-E and:

(a) if the replacement asset conditions in section 152-420 were satisfied because you were a *controlling individual of the company or trust - you stop being a controlling individual of the company or trust; or

(b) if those conditions were satisfied because an entity *connected with you was a *controlling individual of the company or trust:

(i) that entity stops being a controlling individual of the company or trust; or

(ii) that entity stops being connected with you; or

(c) the *share or interest ceases to be an *active asset;

(d) (Repealed by No 165 of 1999)
and you own the share or interest just after the change in circumstances.

Note:

CGT event J3 can also happen in relation to a capital gain you rolled-over under Division 17A of former Part IIIA of the Income Tax Assessment Act 1936 or Division 123 of the Income Tax Assessment Act 1997 if certain circumstances change: see section 104-190 of the Income Tax (Transitional Provisions) Act 1997 .

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History

S 104-190(1) amended by No 101 of 2006 , s 3 and Sch 2 item 685, by amending the reference to a repealed inoperative provision in the note, effective 14 September 2006.

S 104-190(1) amended by 101 of 2003, No 173 of 2000 and No 165 of 1999.

104-190(2)
The time of the event is when the change in circumstances happens.

104-190(3)
You make a capital gain equal to the amount of the capital gain that you disregarded for the share or interest under Subdivision 152-E .
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History

S 104-190(3) amended by No 165 of 1999.

Exceptions

104-190(4)
CGT event J3 does not happen because of paragraph (1)(b) if the replacement asset conditions in section 152-420 were also satisfied because you were a *controlling individual of the company or trust and you remain such a controlling individual.
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History

S 104-190(4) amended by No 165 of 1999.

104-190(5)
CGT event J3 does not happen because of paragraph (1)(c) if the share or interest ceased to be an *active asset only because of changes in the *market values of assets that were owned by the company or trust when you chose the *share or interest as a replacement asset.
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History

S 104-190(5) amended by No 165 of 1999.

S 104-190 inserted by No 94 of 1999.

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