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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