Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS

View history note

Division 124 - Replacement-asset roll-overs

View history note

Subdivision 124-I - Change of incorporation

View history reference

View history note

History

View history note

Subdiv 124-I substituted by No 12 of 2012, s 3 and Sch 2 item 15, effective 21 March 2012. Subdiv 124-I formerly read:

Subdivision 124-I - Conversion of a body to an incorporated company
SECTION 124-520 Conversion of a body to an incorporated company
124-520(1)
You can choose to obtain a roll-over if:

(a) you are a member of a body that is incorporated under a law (other than the Corporations Act 2001 or a similar *foreign law relating to companies); and

(b) the body is converted into a company incorporated under the Corporations Act 2001 or a similar foreign law relating to companies (without creating a new legal entity); and

(c) the company issues you with *shares (and you receive nothing else) in substitution for your interest in the body just before the conversion; and

(d) there is no significant difference in:

(i) the ownership of the body just before the conversion and the ownership of the company just after the conversion; or

(ii) the mix of ownership of the body just before the conversion and the mix of ownership of the company just after the conversion; and

(e) this requirement is satisfied:

(i) you are an Australian resident at the time of the conversion; or

(ii) if you are a foreign resident at that time - your interest in the body was *taxable Australian property just before that time and the *shares are taxable Australian property when they are issued.

Note 1:

The roll-over consequences are set out in Subdivision 124-A . The original asset is your interest in the body. The new asset is your shares in the company.

Note 2:

Section 103-25 tells you when you have to make the choice.

View history note

Hide history note

History

S 124-520(1) amended by No 168 of 2006 , s 3 and Sch 4 item 58, by substituting " was *taxable Australian property just before that time and the *shares are taxable Australian property when they are issued " for " has the *necessary connection with Australia " in para (e)(ii), applicable to CGT events that happen on or after 12 December 2006.

S 124-520(1) amended by No 41 of 2005.

124-520(2)
This section does not apply if the body is a mutual entity that is being demutualised and to whose demutualisation Division 326 in Schedule 2H of the Income Tax Assessment Act 1936 applies.
View history note

Hide history note

History

S 124-520(2) amended by No 58 of 2006 , s 3 and Sch 7 item 77, by inserting " in Schedule 2H " after " Division 326 " , effective 22 June 2006.

S 124-520(3) renumbered as s 124-520(2) by No 41 of 2005.

S 124-520(2) repealed by No 41 of 2005 and amended by No 55 of 2001.

S 124-520(3) inserted by No 103 of 1999.

S 124-520 inserted by No 46 of 1998.

Guide to Subdivision 124-I

SECTION 124-510

124-510 What this Subdivision is about

Roll-over relief is available for members of a body that is incorporated under one law and is converted to, or replaced with, a body incorporated under another law.

View history note

TABLE OF SECTIONS

**TABLE OF SECTIONS**
Object of this Subdivision
124-515	Object of this Subdivision
Change of incorporation without change of entity
124-520	Change of incorporation without change of entity
Old corporation wound up
124-525	Old corporation wound up
Special consequences of some roll-overs
124-530	Shares in company replacing pre-CGT and post-CGT mix of interest and rights in body
124-535	Rights as member of Indigenous corporation replacing pre-CGT and post-CGT mix of interest and rights in body

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.