Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 122.70

Consequences for the company (disposal case)

  (1)   There are these consequences for the company in a disposal case if you choose to obtain a roll - over. They are relevant for each * CGT asset (except a * precluded asset) that you * disposed of to the company.

Note:   A capital gain or loss from a precluded asset can be disregarded: see Subdivision   118 - A.

Asset acquired on or after 20   September 1985

  (2)   If you * acquired the asset on or after 20   September 1985:

  (a)   the first element of the asset's * cost base (in the hands of the company) is the asset's cost base when you disposed of it; and

  (b)   the first element of the asset's * reduced cost base (in the hands of the company) is the asset's reduced cost base when you disposed of it.

Note 1:   There are special indexation rules for roll - overs: see Division   114.

Note 2:   The reduced cost base may be modified for a roll - over happening after a demerger: see section   125 - 170.

Asset acquired before 20   September 1985

  (3)   If you * acquired the asset before 20   September 1985, the company is taken to have acquired it before that day.

Note:   A capital gain or loss from a CGT asset acquired before 20   September 1985 is generally disregarded: see Division   104. This exemption is removed in some situations: see Division   149.


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