Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 152.49

  (1)   This section applies to an entity in an income year (the CGT event year ) if:

  (a)   a * business that the entity previously carried on (including in partnership) is being wound up in that year; and

  (b)   either:

  (i)   the asset was used, or held ready for use, in the course of carrying on the business at a time in the income year in which the business stopped being carried on; or

  (ii)   if the asset is an intangible asset--the asset was inherently connected with the business that was carried on at a time in the income year in which the business stopped being carried on.

  (2)   For the purposes of paragraphs 152 - 40(1)(a) and (b) as they apply for the purposes of paragraphs 152 - 10(1A)(d) and (1B)(e):

  (a)   the entity is taken to carry on the * business at a time in the CGT event year; and

  (b)   either:

  (i)   the * CGT asset is taken to be used, or held ready for use, in the course of carrying on the business at that time; or

  (ii)   if the asset is an intangible asset--the CGT asset is taken to be inherently connected with the business at that time.

Note:   The entity might also be taken to be a small business entity in the CGT event year (see subsection   328 - 110(5)).