Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 701.45

  (1)   This section applies if:

  (a)   an entity ceases to be a subsidiary member of the transitional group; and

  (b)   just before the transitional group came into existence, the entity that became the head company held a pre - CGT asset; and

  (c)   that holding of the asset did not occur as a result of a CGT event:

  (i)   for which there was a roll - over under Subdivision   126 - B of the Income Tax Assessment Act 1997 ; and

  (ii)   that occurred after 11.45 am by legal time in the Australian Capital Territory on 21   September 1999; and

  (d)   just before the entity ceases to be a subsidiary member of the group, the asset is still a pre - CGT asset and is held by the head company only because the entity is taken by subsection   701 - 1(1) (the single entity rule) of the Income Tax Assessment Act 1997 to be a part of the head company.

  (2)   If this section applies, the head company may, in relation to the entity's ceasing to be a subsidiary member, choose that the terminating value for the asset, that is to be used in applying step 1 of the table in section   711 - 20 of the Income Tax Assessment Act 1997 , is equal to its market value just before the transitional group came into existence.