Income Tax Assessment Act 1997
Note: A Commissioner ' s Remedial Power (CRP 2017/2) is relevant to this part of the tax law. Taxation Administration (Remedial Power - Small Business Restructure Roll-over) Determination 2017 (F2017L01687) modifies the operation of s 40-340 of the Income Tax Assessment Act 1997 and any other provisions of a taxation law whose operation is affected by the modified operation of s 40-340 in relation to an asset transferred under a small business restructure roll-over (item 8 of the table in s 40-340(1) ).
The operation of the relevant provisions is modified as follows:
If s 40-340 of ITAA 1997 provides for roll-over relief in relation to a disposal of a depreciating asset because the condition in item 8 of the table in s 40-340(1) of ITAA 1997 is satisfied in relation to the asset, that section has effect as if it also provided that the disposal of the asset has no direct consequences under the income tax law (other than Div 40 of ITAA 1997).
The modification applies in respect of transfers on or after 8 May 2018.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to the Taxation Administration Act 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
There are tax-neutral consequences for a small business entity that restructures the ownership of the assets of the business, without changing the ultimate economic ownership of the assets.
|Object of this Subdivision|
|328-425||Object of this Subdivision|
|Requirements of a roll-over under this Subdivision|
|328-430||When a roll-over is available|
|328-435||Genuine restructures - safe harbour rule|
|328-440||Ultimate economic ownership - discretionary trusts|
|Consequences of a roll-over under this Subdivision|
|328-450||Small business transfers not to affect income tax positions|
|328-455||Effect of small business restructures on transferred cost of assets|
|328-460||Effect of small business restructures on acquisition times of pre-CGT assets|
|328-465||New membership interests as consideration for transfer of assets|
|328-470||Membership interests affected by transfers of assets|
|328-475||Small business restructures involving assets already subject to small business roll-over|