INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3 - Determination of capital gains and capital losses  

SECTION 160ZFA   160ZFA   ADJUSTMENT WHERE SECTION 47A APPLIES TO ROLLED-OVER ASSETS  
Where:


(a) either:


(i) because of Division 17, this Part does not apply to the disposal of an asset by a person (in this section called the ``transferor'' ) to another person (in this section called the ``transferee'' ); or

(ii) because of Division 17, in its application in accordance with Division 7 of Part X, this Part does not apply, for the purpose of calculating the attributable income of a company under that Division in relation to any taxpayer, to the disposal of an asset by the CFC (in this section also called the ``transferor'' ) to another person (in this section also called the ``transferee'' ); and


(b) section 47A applies in relation to the disposal of the asset to deem the transferor to have paid a dividend to the transferee; and


(c) either:


(i) the whole or part of the deemed dividend is included in the assessable income of the transferee under section 44 ; or

(ii) an amount in respect of the deemed dividend is included in the assessable income of another taxpayer under section 458 or 459 ; and


(d) the transferee subsequently disposes of the asset;

then, for the purposes of this Part, the consideration in respect of the subsequent disposal is taken to be reduced by the lesser of:


(e) the amount of the deemed dividend; and


(f) the amount of any capital gain that, disregarding Division 17, would have accrued to the transferor:


(i) where subparagraph (a)(i) applies - under this Part; or

(ii) where subparagraph (a)(ii) applies - under this Part in its application for the purpose of calculating the attributable income of the transferor in relation to the taxpayer;
in respect of the disposal referred to in subparagraph (a)(i) or (ii) if the consideration in respect of the disposal had been equal to the market value of the asset at the time of that disposal.

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