Tax Laws Amendment (2006 Measures No. 4) Act 2006 (168 of 2006)

Schedule 2   Consolidation

Income Tax (Transitional Provisions) Act 1997

6   After subsection 701-35(2)

Insert:

(2A) Subsection (1) does not apply if:

(a) the act, transaction or event mentioned in subsection (1) happened before a demerger and in connection with the demerger; and

(b) before the transitional group came into existence, at least one of the following entities ceased to be a member of the demerger group because of the demerger:

(i) the originating company in relation to the roll-over, or the transferor in relation to the roll-over relief;

(ii) the recipient company, or the transferee in relation to the roll-over relief; and

(c) when the transitional group came into existence, at least one of those entities was not a member of that group.