Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 45.1

What this Division is about

This Division is designed to prevent tax being avoided through:

               (a)     the disposal of leased plant, or an interest in leased plant; or

              (b)     the disposal of a partnership interest in a partnership that leased plant; or

               (c)     the disposal of shares in a 100% subsidiary that leased plant;

where amounts have been deducted for the decline in value of the plant.

It includes amounts in assessable income. Any benefit received, and any reduction in a liability, is taken into account in calculating the amounts included.

Where the disposal of shares in a 100% subsidiary is involved, the companies in the former wholly-owned group may be made jointly and severally liable for tax that the former subsidiary does not pay.

Table of sections

Operative provisions

45-5          Disposal of leased plant or lease

45-10        Disposal of interest in partnership

45-15        Disposal of shares in 100% subsidiary that leases plant

45-20        Disposal of shares in 100% subsidiary that leases plant in partnership

45-25        Group members liable to pay outstanding tax

45-30        Reduction for certain plant acquired before 21.9.99

45-35        Limit on amount included for plant for which there is a CGT exemption

45-40        Meaning of plant and written down value

Operative provisions



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