Taxation Determination
TD 94/78
Income tax: capital gains: is rollover relief available if a taxpayer receives cash and an asset as compensation for the compulsory acquisition of an asset?
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FOI status:
may be releasedFOI number: I 1217825| This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). |
1. Yes. The combined effect of sections 160ZZK and 160ZZL of the Income Tax Assessment Act 1936 is that rollover relief is available provided that the requirements of those sections are otherwise satisfied.
2. Section 160ZZK applies in relation to the part of the compulsorily acquired asset for which cash is received as compensation. Section 160ZZL applies in relation to that portion of the compulsorily acquired asset for which a replacement asset is received.
Example:
X acquired land in 1983. The State Government compulsorily acquires this land in exchange for $1million and another piece of land that it owned. X uses the $1million to acquire additional land.
If appropriate elections are made, sections 160ZZK and 160ZZL work together to deem the new pieces of land to have been acquired before 20 September 1985.
Commissioner of Taxation
8/9/94
Previously issued as Draft TD 93/D101.
References
ATO references:
NO CNN J 36/355/3 Vol. 1 (CGTDET 73)
Related Rulings/Determinations:
TD 94/76
TD 94/77
Subject References:
compulsory acquisition
replacement asset
rollover
Legislative References:
ITAA 160ZZK
ITAA 160ZZL
| Date: | Version: | Change: | |
| You are here | 8 September 1994 | Original ruling | |
| 7 July 2004 | Withdrawn |