Income Tax Assessment Act 1936
Div 3 heading inserted by No 172 of 1978.
(Repealed by No 93 of 2011)
S 73EB repealed by No 93 of 2011, s 3 and Sch 3 item 44, effective 8 September 2011. For application, savings and transitional provisions see note under s
. S 73EB formerly read:
This section applies to the disposal of a unit of section
plant by an eligible company (the
) to another eligible company (the
S 73EB(1) amended by No 117 of 2002.
SECTION 73EB SECTION 73BM ROLL-OVER RELIEF ON DISPOSAL OF PLANT TO ANOTHER MEMBER OF WHOLLY-OWNED GROUP
73EB(1) Roll-over relief where CGT roll-over relief allowed.
(a) the disposal involves a CGT event for which there is a roll-over under Subdivision 126-B of the Income Tax Assessment Act 1997 , as in force before the amendments made to that Subdivision by the New Business Tax System (Consolidation) Act (No. 1) 2002 (or would be, disregarding the exemption in section 118-5 of that Act, so far as it relates to a car, motor cycle or similar vehicle, or to an interest in one); and
(b) Subdivision 170-D of the Income Tax Assessment Act 1997 does not apply to the disposal; and
(c) subject to subsection (5), a deduction or deductions have been allowed or are allowable to the transferor in respect of the unit of plant under section 73BH ; and
(d) no deduction has been allowed or is allowable to the transferor in respect of the unit of plant under Division 42 (Depreciation) of the Income Tax Assessment Act 1997 .
This section applies to the disposal of a unit of section 73BH plant by an eligible company (the transferor ) to another eligible company (the transferee ) if:
S 73EB(1) amended by No 117 of 2002.
73EB(2) No balancing charges for transferor.
Section 73BM does not apply in respect of the disposal of the unit by the transferor.
73EB(3) Effect on transferee.
The transferee is entitled to a deduction under section 73BH worked out using the same effective life and method for working out deductions as the transferor was using in respect of the plant under that section.
73EB(4) Additional consequences.
For the purposes of Division 45 of the Income Tax Assessment Act 1997 :
(a) if the transferor, or a partnership of which the transferor was a member, leased the unit of plant to another entity for most of the time when the transferor or partnership held the unit - 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 unit to another entity - 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 units of plant of that kind - the main business of the transferee is taken also to have been to lease units of plant of that kind.
73EB(5) Subsequent applications of roll-over relief - relief available even if no deduction for subsequent transferor.
If, apart from this subsection, this section has applied to the disposal of the unit of section 73BH plant to the transferee, then, in working out whether it applies to a subsequent disposal of the unit of plant by:
(a) the transferee; or
(b) one or more subsequent successive transferees;
this section has effect as if paragraph (1)(c) (which deals with deductions) were ignored.
73EB(6) Notice to allow transferee to work out how this section applies.
The transferor must give the transferee a notice containing enough information about the transferor's holding of the unit of plant for the transferee to work out how this section applies to the transferee's holding of it.
The transferor must give the notice within 6 months after the end of the transferee's year of income in which the disposal mentioned in subsection (1) occurred, or within a longer period allowed by the Commissioner.
The transferee must keep the notice until the end of 5 years after the earlier of these events:
(a) the transferee disposes of the unit;
(b) the unit is lost or destroyed.
Penalty: 30 penalty units.
The Criminal Code applies to the offence in subsection (8).
S 73EB inserted by No 170 of 2001.
S 73F repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 85, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .
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