Taxation Laws Amendment Act 1993 (Repealed) (17 of 1993)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 16   Amendments relating to capital gains tax (roll-overs involving company groups)

54   After section 160ZZO of the Principal Act the following section is inserted

"160ZZOA. Break-up of company group after section 160ZZO application

(Deemed disposal and re-acquisition on break-up of group)

(1) If:

(a) a group roll-over disposal of an asset to a company takes place; and

(b) the company is not the ultimate holding company in relation to the disposal; and

(c) the company ceases, at a particular time ('the break-up time') when it has not disposed of the asset, to be a subsidiary of the ultimate holding company in relation to:

(i) if subparagraph (ii) does not apply-the disposal; or

(ii) if the disposal is the second or a later disposal in a series of group roll-over disposals-the first of the disposals in the series;

(whether the ceasing is because of the dissolution of the ultimate holding company or any other company or for any other reason);

then the company is taken, for the purposes of this Part:

(d) to have disposed of the asset at the break-up time for a consideration equal to the asset's market value at that time; and

(e) to have immediately re-acquired the asset for that consideration.

(Meaning of expressions)

"(2) For the purposes of this section:

(a) a 'group roll-over disposal' of an asset takes place if section 160ZZO applies to the disposal of the asset; and

(b) a 'series of group roll-over disposals' of an asset takes place if 2 or more group roll-over disposals of the asset take place without an intervening disposal that is not a group roll-over disposal occurring, but once this section has applied, any disposal before the break-up time does not form part of a series for the purposes of any later application of this section; and

(c) the expression 'subsidiary' has the same meaning as in section 160ZZO; and

(d) a company ('the first company') is the 'ultimate holding company' in relation to a group roll-over disposal of an asset if:

(i) the first company is not a subsidiary of another company at the time of the disposal; and

(ii) the disposal is to a subsidiary of the first company or to the first company itself.".