INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZPE   RENEWAL OR EXTENSION OF STATUTORY LICENCE  

160ZZPE(1)   [Application of section]  

This section applies where:

(a) a statutory licence (in this section called the ``original licence'' ) owned by a taxpayer expires or is surrendered;

(b) a fresh statutory licence (in this section called the ``fresh licence'' ) is granted to the taxpayer by way of the renewal, or the extension of the term, of the original licence, where the renewal or extension is (whether by law, custom or otherwise) wholly or principally attributable to the taxpayer's ownership of the original licence; and

(c) in the case of a taxpayer in the capacity of a trustee of a trust estate - immediately after the grant of the fresh licence, the taxpayer holds the fresh licence upon the same trust as the taxpayer held the original licence.

160ZZPE(2)   [Application of Pt IIIA]  

This Part (other than this section) does not apply in respect of the expiry or surrender of the original licence and:

(a) if the original licence was acquired by the taxpayer before 20 September 1985 - the taxpayer shall be taken to have acquired the fresh licence before that date; and

(b) if the original licence was acquired by the taxpayer on or after 20 September 1985 - the taxpayer shall be taken to have paid as consideration in respect of the acquisition of the fresh licence an amount equal to:

(i) for the purposes of ascertaining whether a capital gain accrued to the taxpayer in the event of a subsequent disposal of the fresh licence by the taxpayer - the sum of:

(A) the amount that would have been the indexed cost base to the taxpayer of the original licence for the purposes of this Part if this Part had applied in respect of the expiry or surrender of the original licence; and

(B) any amount paid for the acquisition of the fresh licence; or

(ii) for the purposes of ascertaining whether the taxpayer incurred a capital loss in the event of a subsequent disposal of the fresh licence by the taxpayer - the sum of:

(A) the amount that would have been the reduced cost base to the taxpayer of the original licence for the purposes of this Part if this Part had applied in respect of the expiry or surrender of the original licence; and

(B) any amount paid for the acquisition of the fresh licence.

160ZZPE(3)   [Disposal of fresh licence by taxpayer within 12 months original licence acquired]  

If, in a case to which paragraph (2)(b) applies, the fresh licence is disposed of by the taxpayer within 12 months after the day on which the original licence was acquired by the taxpayer, the reference in that paragraph to the indexed cost base to the taxpayer of the original licence shall be read as a reference to the cost base to the taxpayer of the original licence.

160ZZPE(4)   [Definition]  

In this section:

"statutory licence"
means an authority, licence or permit granted by or on behalf of:

(a) a government; or

(b) a government authority;

under a statutory law of the Commonwealth, of a State, of a Territory or of a foreign country, but does not include:

(c) a lease; or

(d) a mining asset within the meaning of section 160ZZF .