Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 122.15

Disposal or creation of assets--wholly-owned company

                   If you are an individual or a trustee, you can choose to obtain a roll-over if one of the * CGT events (the trigger event ) specified in this table happens involving you and a company in the circumstances set out in sections 122-20 to 122- 35.

 

Relevant * CGT events

Event No.

What you do

A1

* Dispose of a CGT asset, or all the assets of a business, to the company

D1

Create contractual or other rights in the company

D2

Grant an option to the company

D3

Grant the company a right to income from mining

F1

Grant a lease to the company, or renew or extend a lease

Note 1:       The roll-over starts at section 122-40.

Note 2:       Section 103- 25 tells you when you have to make the choice.

Note 3:       A roll-over may also be available under Subdivision 328-G (Restructures of small businesses).

Example:    Gavin runs a plumbing business. He wants to incorporate it so he disposes of all its assets to a company. He becomes the sole shareholder of the company.



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