Forced disposals
The capital gains tax provisions allow you to defer working out a gain or loss where the disposal was:
- as a result of a breakdown of marriage
- caused by the loss or destruction of the asset
- from certain resumptions of property
- from the disposal of certain mining leases.
These rollover provisions will apply in working out the attributable income because of the assumption that the CFC is a resident.
Most of these provisions require that the person disposing of the asset must make an election. You can make the election on behalf of a wholly owned CFC. For more details, read Procedures for electing that the rollover provisions apply.
Group transfers
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.
Residence of CFC |
Recipient company residence |
Asset requirement |
---|---|---|
Resident of a listed country |
Either a resident of that listed country or an Australian resident |
Any asset |
Resident of a listed country |
A resident of a particular unlisted country |
The asset must have been used in connection with a permanent establishment of the CFC in an unlisted country |
Resident of an unlisted country |
Either a resident of an unlisted country at that time or an Australian resident |
Any asset |
The assumption that a CFC is a resident of Australia is ignored in determining its residence for the group transfer provisions.