Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 620 - Assets of wound-up corporation passing to corporation with not significantly different ownership  

Subdivision 620-A - Corporations covered by Subdivision 124-I  

Consequences for depreciating assets

SECTION 620-30   Roll-over relief for balancing adjustment events  

620-30(1)    
This section applies if:

(a) there is a *balancing adjustment event because the body disposes of a *depreciating asset in an income year to the company because the body ceases to exist; and

(b) the disposal involves a *CGT event.

620-30(2)    
This Act applies as if:

(a) there were roll-over relief under subsection 40-340(1) for the *balancing adjustment event; and

(b) the body were the transferor mentioned in that subsection and subsection 328-243(1A) ; and

(c) the company were the transferee mentioned in that subsection and subsection 328-243(1A) .

Note:

Some effects of this are as follows:

(a) the balancing adjustment event does not affect the body ' s assessable income or deductions (see subsection 40-345(1) );

(b) the company can deduct for the decline in value of the asset on the same basis as the body did (see subsection 40-345(2) );

(c) Division 45 (Disposal of leases and leased plant) applies to the company as if it had done the things the body did (see subsection 40-350(1) ).

620-30(3)    
Disregard paragraph 328-243(1A)(c) in determining whether subsection 328-243(1A) applies.