Commonwealth Consolidated Acts

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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 713.505

When this Subdivision applies (first case)

  (1)   This Subdivision provides for a deferral of the taxation consequences that would occur because of an event (the deferral event ) happening involving an entity (the originating entity ) and another entity (the recipient entity ) if:

  (a)   the event occurs in connection with a life insurance company (the member life insurance company ) becoming a member of a consolidated group; and

  (b)   the relevant conditions in section   713 - 520 are met.

  (2)   If the originating entity is a company, the deferral event referred to in subsection   (1) is a CGT event referred to in subsection   (4) happening to a CGT asset (the original asset ) where, apart from this Subdivision, the happening of the event would have resulted in:

  (a)   an amount (other than a capital gain) being included in the originating entity's assessable income; or

  (b)   the originating entity making a capital gain.

  (3)   If the originating entity is a trust, the deferral event referred to in subsection   (1) is a CGT event referred to in subsection   (4) happening to a CGT asset (also the original asset ) where, apart from this Subdivision, the happening of the event would have resulted in:

  (a)   an amount (other than a capital gain) being included in the net income of the trust; or

  (b)   the trustee making a capital gain.

  (4)   The CGT events are:

  (a)   CGT events A1, B1, D1, D2, D3, E2, F1 and F2; and

  (b)   CGT event C2, but only if the CGT asset that ends is a unit in a unit trust that is replaced by an equivalent membership interest (the replacement interest ) in a company or in another trust.


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