Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 40.287

  (1)   This section applies if:

  (a)   on or after 1   July 2001, a company (the transferor ) disposes of a depreciating asset to another company; and

  (b)   the companies are members of the same linked group at the time of the disposal; and

  (c)   apart from this section, the disposal would have resulted in:

  (i)   an amount (the included amount ) being included in the assessable income of the transferor under subsection   40 - 285(1) of the Income Tax Assessment Act 1997 ; and

  (ii)   the transferor having an additional decline in value (the deductible amount ) under subsection   40 - 35(5), 40 - 38(5) or 40 - 40(4) of this Act; and

  (d)   the included amount is more than the deductible amount.

  (2)   Subsection   40 - 35(5), 40 - 38(5) or 40 - 40(4) of this Act does not apply to the disposal.

  (3)   The amount that is included in the transferor's assessable income under subsection   40 - 285(1) of the Income Tax Assessment Act 1997 is the included amount reduced by the deductible amount.