Income Tax Assessment Act 1997



Division 45 - Disposal of leases and leased plant  

Operative provisions  

SECTION 45-20   Disposal of shares in 100% subsidiary that leases plant in partnership  


A company (also the former subsidiary ) is treated as if it had disposed of its interest in * plant, received its *market value for that disposal and immediately reacquired it for the same amount if:

(a) a partnership of which the former subsidiary is (or was) a member has deducted or can deduct an amount for the decline in value of the plant; and

(b) the former subsidiary was a * 100% subsidiary of another company in a * wholly-owned group at a time when:

(i) it was a member of that partnership; and

(ii) the partnership * held the plant; and

(c) for most of the time when the partnership held the plant, the plant was leased to another entity; and

(d) the main * business of the partnership was to lease assets; and

(e) all or part of the lease period occurred on or after 22 February 1999; and

(f) on or after that day, the direct or indirect beneficial ownership of more than 50% of the * shares in the former subsidiary is acquired by an entity or entities none of which is a member of the wholly-owned group; and

(g) the plant ' s * written down value at the time of that acquisition is less than its market value at that time.

However, the former subsidiary is not treated as if it had disposed of the interest and reacquired it if the main business of each of the entities that acquired the direct or indirect beneficial ownership of * shares in the former subsidiary is the same as the main business of the * wholly-owned group of which the former subsidiary was a member.

The disposal and reacquisition of the interest:

(a) is taken to have occurred when that direct or indirect beneficial ownership was acquired; and

(b) is taken not to have affected any lease of the plant.


(Repealed by No 77 of 2001)


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