Income Tax Assessment Act 1997
All of the partners in a partnership can choose to obtain a roll-over if one of the *CGT events (the trigger event ) specified in this table happens involving the partners and a company in the circumstances set out in sections 122-130 to 122-140 .
|Relevant *CGT events|
|Event No.||What the partners do|
|A1||*Dispose of their interests in a *CGT asset of the partnership, or all the assets of a business carried on by the partnership, to the company|
|D1||Create contractual or other rights in the company|
|D2||Grant an option to the company|
|D3||Grant the company a right to income from mining|
|F1||Grant a lease to the company, or renew or extend a lease|
The roll-over starts at section 122-150 .
Section 103-25 tells you when you have to make the choice.
Michael and Sandra operate a fish shop in partnership. They agree to incorporate the business so they dispose of their interests in all its assets to a company. They are the only shareholders of the company.