Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

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

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Division 126 - Same-asset roll-overs

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Subdivision 126-B - Companies in the same wholly-owned group

SECTION 126-40 What this Subdivision is about

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A roll-over may be available for the transfer of a CGT asset between 2 companies, or the creation of a CGT asset by one company in another, if:

(a) both companies are members of the same wholly-owned group; and

(b) at least one of the companies is a foreign resident.

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History

S 126-40 substituted by No 68 of 2002, s 3 and Sch 3 items 20 and 23, effective 24 October 2002.

Act No 68 of 2002, s 3 and Sch 3 (as amended by No 41 of 2005, s 3 and Sch 10 item 265) contains the following application provision:

Application of amendments of Subdivision 126-B
(1)
The amendments apply in relation to a trigger event happening after 30 June 2003, except a trigger event to which subitem (2) applies.

(2)
This subitem and subitem (3) apply to a trigger event if:

(a) the originating company or the recipient company involved in the trigger event becomes a member of a consolidated group, or MEC group, on the day (the consolidation day ) on which that group comes into existence; and

(b) the consolidation day either is before 1 July 2003 or is both:

(i) the first day of the first income year starting after 30 June 2003 of the group's head company (for a consolidated group) or provisional head company (for a MEC group) on the consolidation day; and

(ii) before 1 July 2004; and

(c) the originating company was not a member of a consolidated group or MEC group before the consolidation day.

(3)
The amendments apply in relation to the trigger event if it happens on or after the consolidation day.

The section formerly read:

What this Subdivision is about
126-40
This Subdivision sets out when a company can obtain a roll-over if it transfers a CGT asset to, or creates a CGT asset in, another company that is a member of the same wholly-owned group.

S 126-40 inserted by No 46 of 1998.

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