Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 115 - Discount capital gains and trusts ' net capital gains  

Subdivision 115-A - Discount capital gains  

What is a discount capital gain?

SECTION 115-32   Special rule about time of acquisition for certain replacement-asset roll-overs  

115-32(1)  
This section applies if:


(a) a *CGT event happens to:


(i) your *share in a company; or

(ii) your *trust voting interest, unit or other fixed interest in a trust; and


(b) you *acquired the share or interest as a replacement asset for a *replacement-asset roll-over (other than a roll-over covered by paragraph 115-34(1)(c) ); and


(c) at the time of the CGT event, the company or trust:


(i) owns a *membership interest in an entity (the original entity ); and

(ii) has owned that membership interest for less than 12 months; and


(d) that membership interest is the original asset for the roll-over.

Note:

This section does not affect the time when you are treated as having acquired the replacement asset. That time is worked out under item 2 of the table in subsection 115-30(1) .

Application of tests about the assets of the company or trust

115-32(2)  
Subsection 115-45(4) applies as if the company or trust had *acquired the original asset at least 12 months before the *CGT event, if the condition in that subsection would not be met were it to be applied to the original entity and the CGT event.

115-32(3)  
Subsection 115-45(6) applies as if the company or trust had *acquired the original asset at least 12 months before the *CGT event, if the condition in subsection 115-45(5) would not be met were it to be applied to the original entity and the CGT event.


 

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