Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 122-35 What if the company undertakes to discharge a liability (disposal case)
Disposal of a CGT asset
122-35(1)
One of the requirements in this table must be satisfied if:
(a) you *dispose of a *CGT asset; and
(b) the company undertakes to discharge one or more liabilities in respect of it.
(The *market value, or the *cost base, of an asset is worked out when you disposed of it.)
| What amount the liabilities cannot exceed | ||
| Item | In this situation: | The liabilities cannot exceed: |
| 1 | You *acquired the asset on or after 20 September 1985 | The *cost base of the asset |
| . | ||
| 2 | You *acquired the asset before 20 September 1985 | The *market value of the asset |
Note:
There are rules for working out what are the liabilities in respect of an asset: see section 122-37 .
Disposal of all the assets of a business
122-35(2)
One of the requirements in this table must be satisfied if:
(a) you *dispose of all the assets of a *business; and
(b) the company undertakes to discharge one or more liabilities in respect of the assets of the business.
(The *market value, or the *cost base, of an asset is worked out when you disposed of it.)
| What amount the liabilities cannot exceed | ||
| Item | In this situation: | The liabilities cannot exceed: |
| 1 | You *acquired all the assets on or after 20 September 1985 | The sum of the *market values of the *precluded assets and the *cost bases of the other assets |
| . | ||
| 2 | You *acquired all the assets before 20 September 1985 | The sum of the *market values of the assets |
| . | ||
| 3 | You *acquired at least one asset on or after 20 September 1985 and at least one before that day | For liabilities in respect of assets you *acquired on or after that day - the sum of the *market values of the *precluded assets and the *cost bases of the other assets; |
| For liabilities in respect of assets you *acquired before that day - the sum of the market values of those assets |
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