Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 360 - Early stage investors in innovation companies  

Subdivision 360-A - Tax incentives for early stage investors in innovation companies  

Operative provisions

SECTION 360-65   Separate modified CGT treatment for roll-overs about wholly-owned companies or scrip for scrip roll-overs  

360-65(1)    
If:

(a) a *share mentioned in subsection 360-50(1) has been continuously held by the entity mentioned in that subsection; and

(b) then:

(i) the share, or interests in the share, are *disposed of in a way that gives rise to a trigger event (see section 122-15 or 122-125 ) for a roll-over under Division 122 ; or

(ii) the share becomes the original interest (see paragraph 124-780(1)(a) ) for a roll-over under Subdivision 124-M ; and

(c) the roll-over happens on or after the first anniversary, but before the tenth anniversary, of the issue of the share;

the *first element of the *cost base and *reduced cost base of the share just before the roll-over is taken to be its *market value at that time.

Note:

This subsection is a separate modified CGT treatment, and not a continuation of the modifications made by section 360-50 .

360-65(2)    
If:

(a) an asset mentioned in paragraph 360-60(2)(a) for a roll-over has been continuously held by the entity that *acquired that asset for that roll-over; and

(b) then:

(i) that asset, or interests in that asset, are *disposed of in a way that gives rise to a trigger event (see section 122-15 or 122-125 ) for a roll-over under Division 122 ; or

(ii) that asset becomes the original interest (see paragraph 124-780(1)(a) ) for a roll-over under Subdivision 124-M ; and

(c) the later roll-over happens on or after the first anniversary, but before the tenth anniversary, of the issue of the original share (see subsection 360-60(2) for the earlier roll-over;

the *first element of the *cost base and *reduced cost base of that asset just before the later roll-over is taken to be its *market value at that time.

Note:

This subsection is a separate modified CGT treatment, and not a continuation of the modifications made by section 360-50 .