INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-N - Disposal of assets by a trust to a company  

Operative provisions

SECTION 124-855   What this Subdivision deals with  

124-855(1)  
A roll-over may be available for a restructuring (a trust restructure ) if:


(a) a trust, or 2 or more trusts, (the transferor ) *dispose of all of their *CGT assets to a company limited by *shares (the transferee ); and


(b) *CGT event E4 is capable of applying to all of the units and interests in the transferor; and


(c) the requirements in section 124-860 are met.

Note:

A roll-over is not available for a restructure undertaken by a discretionary trust.

124-855(2)  
For 2 or more transferors, units and interests in each transferor must be owned in the same proportions by the same beneficiaries.

Example:

Matthew and Jaclyn each own 50% of the units in the Spring Unit Trust and the Dale Unit trust. All of the assets of both trusts are disposed of to Jonathon Pty Ltd. A roll-over for a trust restructure is available if the other requirements of this Subdivision are met.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.