Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 310 - Loss relief for merging superannuation funds  

Subdivision 310-E - Consequences of choosing assets roll-over  

SECTION 310-60   CGT assets - individual asset approach  


Consequences for transferring entity

310-60(1)    


The transferring entity may disregard any *capital gain or *capital loss for a transfer event relating to an original asset to which this section applies.
Note:

This section only applies if it is chosen to apply under subsection 310-50(2) .


310-60(2)    


Subsections (3), (4) and (5) apply if under subsection (1) the transferring entity disregards a *capital gain or *capital loss for a transfer event relating to an original asset.

310-60(3)    
The transferring entity ' s *capital proceeds from the transfer event are taken to be an amount equal to:


(a) if, apart from this subsection, the event would result in a *capital gain - the asset ' s *cost base just before the event; or


(b) if, apart from this subsection, the event would result in a *capital loss - the asset ' s *reduced cost base just before the event.



Consequences for receiving entity

310-60(4)    
The first element of the *cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the original asset just before the event.

310-60(5)    
The first element of the *reduced cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the original asset just before the event.


 

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