Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 152.49

Businesses that are winding up

             (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)).

Significant individual test



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