Tax Law Improvement Act 1997 (121 of 1997)

Schedule 6   Depreciation

Part 2   Consequential amendment of the Income Tax Assessment Act 1997

30   At the end of Subdivision 41-A

Add:

41-50 Notice to allow transferee to work out how this Subdivision applies

(1) This section applies if this Common rule applies because of section 41-15.

(2) The transferor must give the transferee a notice containing enough information about the transferor’s holding of the property for the transferee to work out how this Common rule applies to the transferee’s holding of the property.

(3) The transferor must give the notice within 6 months after the end of the transferee’s income year in which the *roll-over event occurred, or within any longer period allowed by the Commissioner.

(4) The transferee must keep the notice until the end of 5 years after the earlier of the following events:

(a) the transferee disposes of the property;

(b) the property is lost or destroyed.

Penalty: 30 penalty units.

41-55 Joint elections for roll-over relief

(1) This section applies if roll-over relief is available because the transferor and transferee have jointly elected for it.

(2) The election must:

(a) be in writing; and

(b) contain enough information about the transferor’s holding of the property for the transferee to work out how this Common rule applies to the transferee’s holding of the property; and

(c) be made within 6 months after the end of the transferee’s income year in which the *roll-over event occurred, or within any longer period allowed by the Commissioner.

(3) If a person dies before the end of the time allowed for jointly electing for roll-over relief, the trustee of the person’s estate may be a party to the election.

(4) The transferor must keep the election or a copy of it for 5 years after the *roll-over event occurred.

Penalty: 30 penalty units.

(5) The transferee must keep the election or a copy of it until the end of 5 years after the earlier of the following events:

(a) the transferee disposes of the property;

(b) the property is lost or destroyed.

Penalty: 30 penalty units.