Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 122-200 Consequences for the company (disposal case) 122-200(1)
There are these consequences for the company in a disposal case if the partners choose to obtain a roll-over. They are relevant for interests in each *CGT asset (except a *precluded asset) that the partners *disposed of to the company.
Note 1:
A capital gain or loss from a precluded asset can be disregarded: see Subdivision 118-A .
Note 2:
The reduced cost base (as determined under this section) may be modified for a roll-over happening after a demerger: see section 125-170 .
Interests acquired on or after 20 September 1985
122-200(2)
If all of the partners ' interests in an asset were *acquired on or after 20 September 1985:
(a) the first element of the asset ' s *cost base (in the hands of the company) is the sum of the cost bases of the partners ' interests in the asset when it was disposed of; and
(b) the first element of the asset ' s *reduced cost base (in the hands of the company) is the sum of the reduced cost bases of the partners ' interests in the asset when it was disposed of.
Note:
There are special indexation rules for roll-overs: see Division 114 .
Interests acquired before 20 September 1985
122-200(3)
If all of the partners ' interests in an asset were *acquired before 20 September 1985, the company is taken to have acquired it before that day.
Note:
A capital gain or loss from a CGT asset acquired before 20 September 1985 is generally disregarded: see Division 104 . This exemption is removed in some situations: see Division 149 .
Interests acquired on or after and before 20 September 1985
122-200(4)
If some of the partners ' interests in an asset (the original asset ) were *acquired on or after 20 September 1985 and some before that day, the company is taken to have acquired 2 separate *CGT assets:
(a) one (which the company is taken to have acquired on or after 20 September 1985) representing the extent to which the partners ' interests in the original asset were acquired by the partners on or after that day; and
(b) another (which the company is taken to have acquired before that day) representing the extent to which the partners ' interests in the original asset were acquired by the partners before that day.
122-200(5)
The first element of the *cost base of the separate asset that the company is taken to have *acquired on or after 20 September 1985 is the sum of the cost bases of the partners ' interests in the original asset that they acquired on or after that day.
Note:
There are special indexation rules for roll-overs: see Division 114 .
122-200(6)
The first element of its *reduced cost base is worked out similarly.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
