Taxation Laws Amendment Act 1993 (17 of 1993)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 8   Amendments relating to roll-over relief where deductions have been allowed for petroleum expenditure

33   Roll-over relief where CGT roll-over relief allowed under section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO or where election for roll-over relief made under section 124AO

Section 124AMAA of the Principal Act is amended:

(a) by inserting in paragraph (4)(a) "and no part of the expenditure of the transferor in respect of the property is unrecouped previous capital expenditure of the transferor" after "transferor" (second occurring);

(b) by omitting paragraph (4)(b) and substituting the following paragraphs:

"(aa) if any part of the expenditure of the transferor in respect of the property is unrecouped previous capital expenditure of the transferor:

(i) the transferee had acquired the property for a consideration equal to the sum of:

(A) so much of the total expenditure of a capital nature of the transferor in respect of the property as is unrecouped previous capital expenditure of the transferor as at the end of the year of income immediately preceding the year of income in which the disposal took place; and

(B) if any part of the expenditure of the transferor in respect of the property is allowable capital expenditure of the transferor-the amount worked out using the formula in paragraph (a); and

(ii) section 124AE has effect in relation to the transferee and in relation to the property as if so much of the expenditure which the transferee is taken to have incurred because of sub-subparagraph (i)(A) of this paragraph were covered by paragraph 124AE(a) or (b); and

(iii) a deduction were not allowable to the transferor under section 124AF for the year of income in which the disposal took place in respect of so much of the unrecouped previous capital expenditure of the transferor as at the end of that year of income as is attributable to the total expenditure of a capital nature of the transferor in respect of the property; and

(b) if no part of the expenditure of the transferor in respect of the property is:

(i) allowable capital expenditure of the transferor; or

(ii) unrecouped previous capital expenditure of the transferor;

the transferee had acquired the property for nil consideration; and";

(c) by inserting in paragraphs (4)(c) and (d) "any part of the expenditure of the transferor in respect of the property is allowable capital expenditure of the transferor and" after "if";

(d) by omitting from subparagraph (4)(c)(ii) "under" and substituting "using the formula in".