(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.