INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 19A - Transfers of assets between companies under common ownership  

Subdivision D - Depreciable assets  

SECTION 160ZZRDL   LOANS TO TRANSFEROR - DEPRECIABLE ASSETS  

160ZZRDL(1)   [Application of sec 160ZZRDM]  

Section 160ZZRDM applies to a loan to the transferor acquired by a taxpayer (the second taxpayer ) if the 3 conditions below are satisfied.

160ZZRDL(2)   [Loan acquired on or after 20 September 1985]  

The first condition is that the loan was acquired by the second taxpayer on or after 20 September 1985 and is held by the second taxpayer at the first asset disposal time.

160ZZRDL(3)   [Parties not dealing at arm's length]  

The second condition is that:

(a) the parties to the loan were not dealing with each other at arm's length in relation to the loan; or

(b) the value of the loan was reduced as a result of the disposal of the first asset.

160ZZRDL(4)   [Shares deemed to have nil cost base]  

The third condition is that:

(a) one or more shares in the transferor (the excess shares ) are taken, because of section 160ZZRDJ or 160ZZRDK to have a cost base, indexed cost base or reduced cost base of nil immediately after the first asset disposal time; or

(b) at the first asset disposal time, there were no shares in the transferor that were acquired (by the second taxpayer or otherwise) on or after 20 September 1985.