Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-80 - ROLL-OVERS APPLYING TO ASSETS GENERALLY  

Division 615 - Roll-overs for business restructures  

Subdivision 615-C - Consequences of roll-overs  

SECTION 615-50   Trading stock  

615-50(1)    
The amount included in your assessable income because of the disposal, redemption or cancellation of each of your *shares or units described in paragraph 615-45(c) that was your *trading stock at the time mentioned in that paragraph is equal to:


(a) if the share or unit had been your trading stock ever since the start of the income year that included that time - the total of:


(i) its *value as trading stock at the start of the income year; and

(ii) the amount (if any) by which its cost had increased since the start of the income year; or


(b) otherwise - its cost at that time.

615-50(2)    
For each of the *shares that you acquired as described in paragraph 615-45(d) that is your *trading stock, you are taken to have paid:


  Total included in your assessable income under subsection (1) for your corresponding *shares or units in the original entity  
  Number of your shares acquired as described in paragraph 615-45(d) that are your *trading stock  


615-50(3)    
For the purposes of Division 70 (about trading stock), you, the original entity and the interposed company are taken to have dealt with each other in the ordinary course of *business and at *arm ' s length for each of the transactions referred to in paragraph 615-5(1)(c) or 615-10(1)(d) or (e) .


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.