INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-80 - ROLL-OVERS APPLYING TO ASSETS GENERALLY  

Division 620 - Assets of wound-up corporation passing to corporation with not significantly different ownership  

Subdivision 620-A - Corporations covered by Subdivision 124-I  

Consequences for depreciating assets

SECTION 620-30   Roll-over relief for balancing adjustment events  

620-30(1)  
This section applies if:


(a) there is a *balancing adjustment event because the body disposes of a *depreciating asset in an income year to the company because the body ceases to exist; and


(b) the disposal involves a *CGT event.

620-30(2)  
This Act applies as if:


(a) there were roll-over relief under subsection 40-340(1) for the *balancing adjustment event; and


(b) the body were the transferor mentioned in that subsection and subsection 328-243(1A) ; and


(c) the company were the transferee mentioned in that subsection and subsection 328-243(1A) .

Note:

Some effects of this are as follows:

  • (a) the balancing adjustment event does not affect the body ' s assessable income or deductions (see subsection 40-345(1) );
  • (b) the company can deduct for the decline in value of the asset on the same basis as the body did (see subsection 40-345(2) );
  • (c) Division 45 (Disposal of leases and leased plant) applies to the company as if it had done the things the body did (see subsection 40-350(1) ).
  • 620-30(3)  
    Disregard paragraph 328-243(1A)(c) in determining whether subsection 328-243(1A) applies.


    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.