Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 122-125 122-125 Disposal or creation of assets - wholly-owned company
All of the partners in a partnership can choose to obtain a roll-over if one of the *CGT events (the trigger event ) specified in this table happens involving the partners and a company in the circumstances set out in sections 122-130 to 122-140 .
| Relevant *CGT events | |
| Event No. | What the partners do |
| A1 | *Dispose of their interests in a *CGT asset of the partnership, or all the assets of a business carried on by the partnership, to the company |
| . | |
| D1 | Create contractual or other rights in the company |
| . | |
| D2 | Grant an option to the company |
| . | |
| D3 | Grant the company a right to income from mining |
| . | |
| F1 | Grant a lease to the company, or renew or extend a lease |
Note 1:
The roll-over starts at section 122-150 .
Note 2:
Section 103-25 tells you when you have to make the choice.
Example:
Michael and Sandra operate a fish shop in partnership. They agree to incorporate the business so they dispose of their interests in all its assets to a company. They are the only shareholders of the company.
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