PART 3
-
INCOME TAX RELIEF FOR TRANSFERS
Division 2
-
General relief
SECTION 15
ASSET TRANSFERS
-
GENERAL
15(1)
Tax treatment of transferring corporation.
In determining:
(a)
whether an amount is included in the assessable income of the transferring corporation under section
25A
,
26BB
or
159GS
of the
Income Tax Assessment Act 1936
or section
6-5
,
15-15
or
775-15
of the
Income Tax Assessment Act 1997
; or
(b)
whether an amount is allowable as a deduction to the transferring corporation under section
52
,
70B
or
159GS
of the
Income Tax Assessment Act 1936
or section
8-1
or
775-30
of the
Income Tax Assessment Act 1997
;
in respect of a transfer of an asset, the transferring corporation is to be treated as if the transfer had not occurred.
History
S 15(1) amended by No 47 of 2016, s 3 and Sch 6 item 6, by omitting
"
, 26C
"
after
"
26BB
"
from para (a), applicable in respect of securities issued on or after 6 May 2016. No 47 of 2016, s 3 and Sch 6 items 21
-
25 contain the following savings provisions:
Division 2
-
Savings provisions
21 Object
21
The object of this Division is to ensure that, despite the repeals and amendments made by this Schedule, the full legal and administrative consequences of:
(a)
any act done or omitted to be done; or
(b)
any state of affairs existing; or
(c)
any period ending;
before such a repeal or amendment applies, can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken after the repeal or amendment applies.
22 Making and amending assessments, and doing other things, in relation to past matters
22
Even though an Act is repealed or amended by this Schedule, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument:
(a)
making or amending an assessment (including under a provision that is itself repealed or amended);
(b)
exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);
in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.
23 Saving of provisions about effect of assessments
23
If a provision or part of a provision that is repealed or amended by this Schedule deals with the effect of an assessment, the repeal or amendment is disregarded in relation to assessments made, before or after the repeal or amendment applies, in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.
24 Repeals disregarded for the purposes of dependent provisions
24
If the operation of a provision (the
subject provision
) of any Act or legislative instrument depends to any extent on an Act, or a provision of an Act, that is repealed by this Act, the repeal is disregarded so far as it affects the operation of the subject provision.
25 Schedule does not limit operation of section 7 of the
Acts Interpretation Act 1901
25
This Schedule does not limit the operation of section
7
of the
Acts Interpretation Act 1901
.
S 15(1) amended by
No 101 of 2006
, s 3 and Sch 2 items 52
-
53, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 15(1) amended by No 133 of 2003, No 121 of 1997 and No 39 of 1997.
15(2)
Receiving corporation not entitled to a deduction for expenditure incurred in acquiring asset.
A deduction is not allowable to the receiving corporation under section
8-1
of the
Income Tax Assessment Act 1997
in respect of expenditure incurred in the acquisition of an asset as the result of a transfer. However, this subsection does not apply to the acquisition of trading stock.
History
S 15(2) amended by
No 101 of 2006
, s 3 and Sch 2 item 54, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 15(2) amended by No 39 of 1997.
15(3)
Receiving corporation to inherit transferring corporation
'
s cost base.
If an asset is transferred, then, in determining:
(a)
whether an amount is included in the assessable income of the receiving corporation under section
25A
or
26BB
or Division
16E
of Part
III
of the
Income Tax Assessment Act 1936
or section
6-5
,
15-15
or
775-15
of the
Income Tax Assessment Act 1997
; or
(b)
whether an amount is allowable as a deduction to the receiving corporation under section
52
,
70B
or Division
16E
of Part
III
of the
Income Tax Assessment Act 1936
or section
8-1
or
775-30
of the
Income Tax Assessment Act 1997
;
in respect of the holding, or any subsequent disposal, of the asset, the receiving corporation is to be treated as if it had acquired the asset for an amount equal to what would have been the asset
'
s cost base to the transferring corporation for the purposes of working out under the
Income Tax Assessment Act 1997
whether the transferring corporation made a capital gain from the transfer.
Note:
For transitional provisions about former sections 82Y and 82Z of the
Income Tax Assessment Act 1936
, see Part 2 of Schedule 4 to the
New Business Tax System (Taxation of Financial Arrangements) Act (No. 1) 2003
.
History
S 15(3) amended by No 47 of 2016, s 3 and Sch 6 item 7, by substituting
"
or 26BB
"
for
"
, 26BB, 26C
"
in para (a), applicable in respect of securities issued on or after 6 May 2016. For savings provisions, see note under s
15(1)
.
S 15(3) amended by
No 101 of 2006
, s 3 and Sch 2 items 55
-
56, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 15(3) amended by No 133 of 2003, No 46 of 1998, No 121 and No 39 of 1997.
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