Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-80 - ROLL-OVERS APPLYING TO ASSETS GENERALLY  

Division 620 - Assets of wound-up corporation passing to corporation with not significantly different ownership  

Subdivision 620-A - Corporations covered by Subdivision 124-I  

Consequences for revenue assets

SECTION 620-50   Body taken to have sold revenue assets to company  

Disposal

620-50(1)    
Subsections (2) and (3) apply to a *CGT asset:

(a) that the body *disposes of to the company because the body ceases to exist; and

(b) that is a *revenue asset of the body just before the disposal.

Note:

Trading stock and depreciating assets are not revenue assets. See section 977-50 .

620-50(2)    
The body is taken to have disposed of the *revenue asset to the company for an amount such that the body would not make a profit or a loss on the disposal.

620-50(3)    
For the purpose of calculating any profit or loss on a future disposal of, cessation of owning, or other realisation of, the *revenue asset, the company is taken to have paid the body that amount for the disposal of the revenue asset to the company.

Ceasing to own or other realising

620-50(4)    
Subsection (5) applies to a *CGT asset:

(a) that the body ceases to own, or otherwise realises, because the body ceases to exist; and

(b) that is a *revenue asset of the body just before the cessation or realisation.

Note:

Trading stock and depreciating assets are not revenue assets. See section 977-50 .

620-50(5)    
The body is taken to have disposed of the *revenue asset for an amount such that the body would not make a profit or a loss on the disposal.