INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision C - General provisions  

SECTION 122R   CHANGE IN INTERESTS IN PROPERTY  

122R(1)   [Property deemed sold]  

If, for any reason, including:

(a) the formation or dissolution of a partnership; or

(b) a variation in the constitution of a partnership or in the interests of partners,

a change has occurred in the ownership of, or in the interests of persons in, property in respect of which deductions have been allowed or are allowable under this Division, and the person, or one or more of the persons, who owned the property before the change has or have an interest in the property after the change, the provisions of this Division apply as if the person or persons who owned the property before the change (in this section called the transferor ) had, on the day on which the change occurred, disposed of the whole of the property to the person, or all the persons, by whom the property is owned after the change (in this section called the transferee ).

122R(2)   [Disposal of mining property]  

If deductions have been allowed or are allowable under Subdivision A in respect of the property:

(a) unless a joint election for roll-over relief is made by both the transferor and the transferee - this Division applies as if the consideration for the disposal were equal to the market value of the property immediately before the time when the change occurred; or

(b) if a joint election for roll-over relief is made by both the transferor and the transferee - section 122JAA applies to the disposal.

122R(2A)   [Disposal of quarrying property]  

If deductions have been allowed or are allowable under Subdivision B in respect of the property:

(a) unless a joint election for roll-over relief is made by both the transferor and the transferee - this Division applies as if the consideration for the disposal were equal to the market value of the property immediately before the time when the change occurred; or

(b) if a joint election for roll-over relief is made by both the transferor and the transferee - section 122JG applies to the disposal.

122R(2B)   [Conditions for joint election]  

A joint election for roll-over relief has no effect unless it:

(a) is in writing; and

(b) is made:

(i) within 6 months after the later of the following:

(A) the end of the year of income of the transferee in which the disposal occurred;

(B) the commencement of this subsection; or

(ii) within such further period as the Commissioner allows; and

(c) contains such information about the transferor's holding of the property as will enable the transferee to work out how section 122JAA or 122JG , as the case may be, will apply to the transferee's holding of the property.

122R(2C)   [Trustee of deceased estate]  

If a person dies before the end of the period allowed for making a joint election for roll-over relief, the trustee of the deceased person's estate may be a party to the election on the deceased person's behalf.

122R(3)   [Market value]  

A reference in subsection (2) or (2A) to the market value of property at a particular time shall, if there is insufficient evidence of the market value of the property at that time, be read as a reference to such amount as, in the opinion of the Commissioner, is fair and reasonable.

122R(4)   [Definitions]  

In this section:

mining or prospecting right
has the same meaning as in Subdivision A.

property
includes:

(a) a mining or prospecting right; and

(b) a quarrying or prospecting right.

quarrying or prospecting right
has the same meaning as in Subdivision B.