INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZPI   MERGER OF QUALIFYING SUPERANNUATION FUNDS  

160ZZPI(1)   Application of section.  

If:

(a) a taxpayer (the transferor ) that is a qualifying superannuation fund that was in existence on 1 July 1994 disposes of an asset (the merger asset ) to another qualifying superannuation fund (the transferee ); and

(b) the disposal occurs under a merger between the transferor and the transferee; and

(c) the transferor and the transferee have, before the beginning of the merger period in relation to the merger, jointly elected in writing that this section apply to all disposals under the merger; and

(d) the transferor has retained the election and the transferee has been given a copy of the election;

this section, section 160ZZPIA and section 160ZZU apply to the disposal.

Note:

Section 160ZZPIA sets out the circumstances in which a disposal is under a merger and defines merger period and qualifying superannuation fund .

160ZZPI(2)   Part IIIA not to apply.  

The other provisions of this Part do not apply to the disposal.

160ZZPI(3)   Capital gain - subsequent disposal.  

For the purposes of working out whether a capital gain accrued to the transferee in the event of a subsequent disposal of the merger asset by the transferee, the transferee is taken to have paid whichever of the following amounts applies as consideration for the acquisition of the merger asset:

(a) if the merger asset was disposed of by the transferee within 12 months after the day on which the merger asset was acquired by the transferor - the amount that would have been the cost base to the transferor of the merger asset for the purposes of the other provisions of this Part if they had applied to the disposal of the merger asset by the transferor to the transferee;

(b) in any other case - the amount that would have been the indexed cost base to the transferor of the merger asset for the purposes of the other provisions of this Part if they had applied to the disposal of the merger asset by the transferor to the transferee.

160ZZPI(4)   Capital loss - subsequent disposal.  

For the purposes of working out whether the transferee incurred a capital loss in the event of a subsequent disposal of the merger asset by the transferee, the transferee is taken to have paid, as consideration for the acquisition of the merger asset, the amount that would have been the reduced cost base to the transferor of the merger asset for the purposes of the other provisions of this Part if they had applied to the disposal of the merger asset by the transferor to the transferee.

160ZZPI(5)   Transitional - extension of time for election.  

If the merger period begins before the commencement of this section, the election under paragraph (1)(c) may be made within 2 months after the commencement of this section.