New Business Tax System (Integrity and Other Measures) Act 1999 (Incorporating amendments up to Act No. 78 of 2001) (169 of 1999)

Schedule 1   Disposal of leases and leased plant

Income Tax Assessment Act 1997

8   At the end of section 41-40

Add:

Transferee taken to have inherited certain other characteristics for the purposes of Division 45

(4) Third, for the purposes of Division 45:

(a) if the transferor, or a partnership of which the transferor was a member, leased the property to another entity for most of the time that the transferor or partnership owned or was the *quasi-owner of the property, the transferee is taken also to have done so; and

(b) if the transferor, or a partnership of which the transferor was a member, leased the property to another entity for a period on or after 22 February 1999, the transferee is taken also to have done so; and

(c) if the main *business of the transferor, or a partnership of which the transferor was a member, was to lease assets, the main business of the transferee is taken also to have been to lease assets.

(5) However, subsection (4) does not apply to roll-over relief under this Common rule because of section 41-23 if the sum of the amounts specified in paragraph 45-5(1)(e) or 45-10(1)(f), or subsection 45-5(4) or 45-10(4), is at least equal to the market value of the *plant or interest concerned.

Note: There is an additional rule for disposals between 22 February 1999 and 21 September 1999: see Division 41 of the Income Tax (Transitional Provisions) Act 1997.