Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 360 - Early stage investors in innovation companies  

Subdivision 360-A - Tax incentives for early stage investors in innovation companies  

Operative provisions

SECTION 360-60   Modified CGT treatment - not affected by certain roll-overs  

360-60(1)    
The purpose of this section is to ensure that the modifications made by section 360-50 are not affected merely because of one or more *same-asset roll-overs or *replacement-asset roll-overs (other than roll-overs under Division 122 or Subdivision 124-M ).

360-60(2)    
If, apart from those roll-overs, the entity (the original entity ) mentioned in subsection 360-50(1) would continue to hold the *share (the original share ) mentioned in that subsection, then subsections 360-50(2) to (5) apply as if:

(a) the following asset were the original share:

(i) if the last roll-over is a *same-asset roll-over - the asset for the roll-over;

(ii) if the last roll-over is a *replacement-asset roll-over - the replacement asset for the roll-over; and

Note:

The asset for subparagraph (i) will be the original share unless a replacement-asset roll-over happened beforehand.

(b) that asset was issued when the original share was issued; and

(c) the entity that *acquired that asset for the roll-over had continuously held that asset since the original share was issued; and

(d) that entity were the original entity; and

(e) in a case where that entity is a partnership - paragraphs (a) to (d) modify subsections 360-50(2) to (5) as they apply with the modifications in section 360-55 ; and

(f) in a case where that entity is not a partnership but the entity that owned the original asset for the roll-over is - paragraphs (a) to (d) modify subsections 360-50(2) to (5) as they apply without the modifications in section 360-55 .

Note:

A roll-over under Division 122 (about wholly-owned companies) or Subdivision 124-M (about scrip for scrip roll-overs) will stop the modified CGT treatment under section 360-50 from continuing to apply.