Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-80 - ROLL-OVERS APPLYING TO ASSETS GENERALLY  

Division 615 - Roll-overs for business restructures  

Subdivision 615-A - Choosing to obtain roll-overs  

SECTION 615-5   Disposing of interests in one entity for shares in a company  

615-5(1)    
You can choose to obtain a roll-over if:

(a) you are a *member of a company or a unit trust (the original entity ); and

(b) you and at least one other entity (the exchanging members ) own all the *shares or units in it; and

(c) under a *scheme for reorganising its affairs, the exchanging members *dispose of all their shares or units in it to a company (the interposed company ) in exchange for shares in the interposed company (and nothing else); and

(d) the requirements in Subdivision 615-B are satisfied.

Note 1:

For paragraph (c), see section 124-20 if an exchanging member uses a share sale facility.

Note 2:

After the completion of the scheme, later dealings between the interposed company and the original entity may be subject to the rules for consolidated groups (see Part 3-90 ).

615-5(2)    
You are taken to have chosen to obtain the roll-over if:

(a) immediately before the completion time (see section 615-15 ), the original entity is the *head company of a *consolidated group; and

(b) immediately after the completion time, the interposed company is the head company of the group.

Note:

The consolidated group continues in existence because of section 703-70 .