Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 122 - Roll-over for the disposal of assets to, or the creation of assets in, a wholly-owned company  

Subdivision 122-A - Disposal or creation of assets by an individual or trustee to a wholly-owned company  

Same-asset roll-over consequences for the company (creation case)

SECTION 122-75   Consequences for the company (creation case)  

122-75(1)    
There are these consequences for the company in a creation case if you choose to obtain a roll-over.

122-75(2)    
The first element of the created asset's *cost base (in the hands of the company) is the applicable amount from the table in subsection 122-65(2) .

Example:

To continue the example in section 122-65 , the cost base of the licence in Tiffin Pty Ltd's hands is $1,000.

122-75(3)    
The first element of the created asset's *reduced cost base (in the hands of the company) is worked out similarly.