SCHEDULE 2D - Tax exempt entities that become taxable  


57-25(2)   Deemed disposal and re-purchase.  

Subject to subsection (5), in determining:

(a) for the purposes of this Act (other than Part IIIA and the excluded provisions mentioned in subsection (4)) whether an amount is included in, or allowable as a deduction from, the assessable income of the transition taxpayer in respect of the disposal; or

(b) for the purposes of Part IIIA :

(i) whether a capital gain accrues to the transition taxpayer in respect of the disposal; or

(ii) whether the transition taxpayer incurs a capital loss in respect of the disposal;

the transition taxpayer is taken:

(c) to have sold, immediately before the transition time, each of its assets; and

(d) to have purchased each of its assets again at the transition time for consideration equal to the asset's adjusted market value at the transition time.


(a) sections 53I to 62AAV of this Act(relating to depreciation on trading ships); and

(b) Subdivision B of Division 3 of Part III of this Act (about development allowance); and

(c) Divisions 10 , 10AAA , 10AA and 10AB of Part III (about operations relevant to the mining and quarrying industry); and

(d) Division 10A of Part III (about timber operations and timber mill buildings); and

(g) Divisions 10C and 10D (about deductions for capital expenditure on some buildings); and

(h) the former Division 42 of the Income Tax Assessment Act 1997 (about depreciation); and

(k) the former Division 330 of the Income Tax Assessment Act 1997 (about mining and quarrying); and

(l) the former Subdivision 387-G of the Income Tax Assessment Act 1997 (about forestry roads and timber mill buildings).

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