INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION

Division 9B - State Bank of NSW

SECTION 121EO DEEMED CESSATION AND RE-ASSUMPTION OF LIABILITIES

121EO(1) [Timing of deemed cessation and re-assumption]

For the purposes of the application of this Act to the NSW State Bank, the Bank is taken to have ceased immediately before the first taxing time to have any liabilities, and to have assumed each of the liabilities again at the first taxing time in return for consideration equal to the market value at that time of the right or other asset, corresponding to the liability, that is held by the person to whom the liability is owed.

121EO(2) [Example]

An example for the purposes of subsection (1) is a liability under a security, issued by the NSW State Bank before the first taxing time, to pay an amount of $1,000 after that time. If the market value of the holders' right to receive the $1,000 under the security was $950 at the first taxing time, the NSW State Bank is taken to have received, at the first taxing time, $950 by way of consideration for assuming the liability under the security to pay the $1,000.

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