• Group transfers

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The CGT rollover provisions allow companies that have 100% common ownership to defer, in certain circumstances, capital gains or losses on assets transferred between companies in the group. In the case of asset transfers between CFCs with 100% common ownership the circumstances under which the rollover provisions apply are modified.

    Transfer by a CFC in a broad-exemption listed country

    The group rollover rules are available where the transferor CFC is a resident of a broad-exemption listed country and the transferee is either:

    • a CFC resident of the same broad-exemption listed country or
    • an Australian resident company, or
    • a CFC resident of a particular non-broad-exemption listed country and immediately before the disposal, the asset was used in connection with a permanent establishment of the transferor in a non-broad-exemption listed country at or through which the transferor carried on a business.

    Rollovers permitted for a CFC transferor resident in a broad-exemption listed country

    Transferor

    Asset

    Transferee

    CFC in a broad-exemption listed country

    Any asset

    CFC in the same country

    Any asset

    Australian company

    Assets used by a branch in a non-broad-exemption listed country

    CFC in a non-broad-exemption listed country

    Transfer by a CFC in a non-broad-exemption listed country

    The group rollover provisions will also apply where the transferor CFC is a resident of a non-broad-exemption listed country and the transferee is either:

    • a CFC resident of a non-broad-exemption listed country or
    • an Australian resident company.

    Rollovers permitted for a CFC transferor resident in a non-broad-exemption listed country

    Transferor

    Asset

    Transferee

    CFC in a broad-exemption listed country

    Any asset

    CFC in any non-broad-exemption listed country

    Any asset

    Australian company

    The assumption that a CFC is a resident of Australia is ignored in determining its residence for the group transfer provisions.

    Last modified: 05 Dec 2006QC 17522