Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 58.5

Application of Division

             (1)  This Division applies in 2 situations.

Entity sale

             (2)  The first (an entity sale situation ) is where:

                     (a)  at a particular time on or after 1 July 2001, an entity is an * exempt entity; and

                     (b)  just after that time, the entity's * ordinary income or * statutory income becomes to any extent assessable income.

             (3)  In an entity sale situation:

                     (a)  the entity is a transition entity ; and

                     (b)  the time when the entity's * ordinary income or * statutory income becomes to that extent assessable is the transition time ; and

                     (c)  the income year in which the * transition time occurs is the transition year for the entity; and

                     (d)  the * depreciating assets the * transition entity * held just before the transition time are privatised assets .

Asset sale

             (4)  The second (an asset sale situation ) is where:

                     (a)  at a particular time on or after 1 July 2001, an entity (the purchaser ) whose * ordinary income or statutory income is to any extent assessable acquires a * depreciating asset from the Commonwealth, a State, a Territory or an * exempt entity; and

                     (b)  the asset is acquired in connection with the acquisition of a * business from the Commonwealth, the State, the Territory or the exempt entity.

             (5)  In an asset sale situation:

                     (a)  the Commonwealth, the State, the Territory or the * exempt entity is the tax exempt vendor ; and

                     (b)  the time when the * depreciating asset is acquired is the acquisition time ; and

                     (c)  the income year in which the * acquisition time occurs is the acquisition year ; and

                     (d)  each * depreciating asset the purchaser acquires from the * tax exempt vendor at the acquisition time is a privatised asset .



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback