Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 124.795

Exceptions

             (1)  You cannot obtain the roll-over if, just before you stop owning your original interest, you are a foreign resident unless, just after you * acquire your replacement interest, the replacement interest is * taxable Australian property.

             (2)  You cannot obtain the roll-over if:

                     (a)  any * capital gain you might make from your replacement interest would be disregarded (except because of a roll-over); or

                     (b)  you and the acquiring entity are members of the same * wholly-owned group just before you stop owning your original interest and the acquiring entity is a foreign resident.

Example:    An example of a capital gain or loss being disregarded as mentioned in paragraph (2)(a) is because the asset is trading stock.

Note:          A roll-over may be available under Subdivision 126-B in the circumstances mentioned in paragraph (2)(b).

             (3)  You cannot obtain the roll-over for the * CGT event happening in relation to the exchange of your original interest if you can choose a roll-over under Division 122 or 615 for that event.

Note:          Division 122 deals with the disposal of assets to a wholly-owned company, and Division 615 deals with business restructures.

             (4)  You cannot obtain the roll-over for the * CGT event happening in relation to the exchange of your qualifying interest if:

                     (a)  the replacement entity makes a choice to that effect under this subsection; and

                     (b)  that entity or the original entity notifies you in writing of the choice before the exchange.



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