INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-M - Scrip for scrip roll-over  

Operative provisions

SECTION 124-795   124-795(1)   Exceptions  


You cannot obtain the roll-over if, just before you stop owning your original interest, you are a foreign resident unless, just after you *acquire your replacement interest, the replacement interest is *taxable Australian property.

124-795(2)  
You cannot obtain the roll-over if:


(a) any *capital gain you might make from your replacement interest would be disregarded (except because of a roll-over); or


(b) you and the acquiring entity are members of the same *wholly-owned group just before you stop owning your original interest and the acquiring entity is a foreign resident.

Example:

An example of a capital gain or loss being disregarded as mentioned in paragraph (2)(a) is because the asset is trading stock.

Note:

A roll-over may be available under Subdivision 126-B in the circumstances mentioned in paragraph (2)(b).

124-795(3)  


You cannot obtain the roll-over for the *CGT event happening in relation to the exchange of your original interest if you can choose a roll-over under Division 122 or 615 for that event.
Note:

Division 122 deals with the disposal of assets to a wholly-owned company, and Division 615 deals with business restructures.

124-795(4)  


You cannot obtain the roll-over for the *CGT event happening in relation to the exchange of your qualifying interest if:


(a) the replacement entity makes a choice to that effect under this subsection; and


(b) that entity or the original entity notifies you in writing of the choice before the exchange.

124-795(5)  
(Repealed by No 168 of 2006 )


 

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