INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

Subdivision 328-G - Restructures of small businesses  

Consequences of a roll-over under this Subdivision

SECTION 328-455   Effect of small business restructures on transferred cost of assets  

328-455(1)  
The *income tax law applies to an entity in relation to the transfer of an asset by the entity, or to the entity, as if the transfer takes place for the asset ' s *roll-over cost if:


(a) the transfer occurs under a transaction in relation to which section 328-430 applies; and


(b) a roll-over under this Subdivision is available under that section in relation to the asset.

328-455(2)  
The asset ' s roll-over cost is whichever of the following amounts is applicable in relation to the transfer:


(a) in relation to the application of subsection (1) to the asset as a *CGT asset (other than *trading stock, a *revenue asset or a *depreciating asset) - the transferor ' s *cost base for the asset just before the transfer takes effect;


(b) in relation to the application of subsection (1) to the asset as trading stock - the amount equal to:


(i) the *cost of the item for the transferor; or

(ii) if the transferor held the item as trading stock at the start of the income year - the *value of the item for the transferor then;


(c) in relation to the application of subsection (1) to the asset as a revenue asset - the amount that would give rise to the transferor not making a profit or a loss on the transfer.


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