Income Tax (Transitional Provisions) Act 1997
View history note
Hide history noteThis section applies if:
(a) on or after 1 July 2001, a company (the transferor ) disposes of a depreciating asset to another company; and
(b) the companies are members of the same linked group at the time of the disposal; and
(c) apart from this section, the disposal would have resulted in:
(i) an amount (the included amount ) being included in the assessable income of the transferor under subsection 40-285(1) of the Income Tax Assessment Act 1997 ; and
(ii) the transferor having an additional decline in value (the deductible amount ) under subsection 40-35(5) , 40-38(5) or 40-40(4) of this Act; and
(d) the included amount is more than the deductible amount.
40-287(2)
Subsection 40-35(5) , 40-38(5) or 40-40(4) of this Act does not apply to the disposal.
40-287(3)
The amount that is included in the transferor's assessable income under subsection 40-285(1) of the Income Tax Assessment Act 1997 is the included amount reduced by the deductible amount.
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