New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 17   Consolidation: transitional cost setting rule relating to roll-overs

Income Tax (Transitional Provisions) Act 1997

2   At the end of section 701-35


(2) The provisions are:

(a) Division 705 of the Income Tax Assessment Act 1997; and

(b) provisions of this Act modifying the effect of that Division.

(3) Subsection (1) does not apply if:

(a) the asset mentioned in subsection (1) is a membership interest in an entity (the test entity ); and

(b) when the CGT event happened:

(i) the originating company in relation to the roll-over, or the transferor in relation to the roll-over relief, was a foreign resident; and

(ii) the recipient company, or the transferee in relation to the roll-over relief, was an Australian resident; and

(c) when the transitional group came into existence, the test entity was a subsidiary member of the group, other than as a transitional foreign-held subsidiary of the group.