Taxation Determination

TD 93/82

Income tax: is roll-over relief available under section 160ZZK of the Income Tax Assessment Act 1936 where a taxpayer is forced to dispose of an asset due to an adverse change in the taxpayer's financial circumstances?

This version is no longer current. Please follow this link to view the current version.

Please note that the PDF version is the authorised version of this ruling.

This ruling contains references to repealed provisions, some of which may have been rewritten. The ruling still has effect. Paragraph 32 in TR 2006/10 provides further guidance on the status and binding effect of public rulings where the law has been repealed or repealed and rewritten. The legislative references at the end of the ruling indicate the repealed provisions and, where applicable, the rewritten provisions.

This document has changed over time. View its history.

FOI status:

may be releasedFOI number: I 1214858

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. No. The roll-over relief available under section 160ZZK only applies to an "involuntary" disposal brought about by the compulsory acquisition of the asset, or by the loss or destruction of, or damage to, the asset. While the taxpayer might consider such a disposal to be "involuntary", it did not result from a "compulsory acquisition".

2. "Compulsory acquisition" is defined in subsection 160ZZK(7C) to mean the compulsory acquisition of an asset by the Australian government or by an Australian government authority. (This includes a mutually negotiated disposal of an asset where the government or government authority reserves a right of compulsory acquisition. It also applies to situations where a taxpayer receives a payment for the non-renewal of a Crown lease).

Example :

A taxpayer acquires a block of land and plans to construct a building on it. The taxpayer loses his job and can no longer afford to proceed with the plan. He then decides to sell the land.

Roll-over relief is not available under section 160ZZK to the taxpayer in respect of the disposal of the land in these circumstances.

Commissioner of Taxation
6/5/93

Previously issued as Draft TD 93/D2

References

ATO references:
NO CHA/DW/11/81 (CGTDET67)

ISSN 1038 - 8982

Related Rulings/Determinations:

CGT15, now TD 15

Subject References:
Australian government;
compulsory acquisition;
involuntary disposal;
roll-over

Legislative References:
ITAA 160ZZK;
ITAA 160ZZK(7C)

TD 93/82 history

	Date:	Version:	Change:
	6 May 1993	Original ruling
You are here	29 November 2006	Original ruling + note	Repeal provision note
	1 July 2009	Withdrawn

Copyright notice

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).