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  • Rollover of assets under the capital gains tax provisions


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

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    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.

    These are set out in the table below:

    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.

    Last modified: 05 Dec 2006QC 18000