Income Tax Assessment Act 1936
(a) net gains are to be taken to have accrued to a company in a statutory accounting period in relation to the disposal of tainted assets owned by the company if, and only if, the sum of the gains of the company in relation to the disposal of tainted assets during the statutory accounting period exceeds the sum of the losses (if any) of the company in relation to the disposal of tainted assets during the statutory accounting period; and
(b) the amount of the net gains is equal to the amount of the excess. 445(2) [Interpretation]
In paragraph (1)(a):
CGT event J1 is about companies ceasing to be related after a roll-over.
Basically, the effect of the assumptions in paragraphs 383(a) to (c) is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.