INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

SCHEDULE 2D - Tax exempt entities that become taxable  

SECTION 57-25   DEEMED DISPOSAL AND RE-ACQUISITION OF ASSETS  

57-25(2)   Deemed disposal and re-purchase.  

Subject to subsection (5), in determining:

(a) for the purposes of this Act (other than Part IIIA and the excluded provisions mentioned in subsection (4)) whether an amount is included in, or allowable as a deduction from, the assessable income of the transition taxpayer in respect of the disposal; or

(b) for the purposes of Part IIIA :

(i) whether a capital gain accrues to the transition taxpayer in respect of the disposal; or

(ii) whether the transition taxpayer incurs a capital loss in respect of the disposal;

the transition taxpayer is taken:

(c) to have sold, immediately before the transition time, each of its assets; and

(d) to have purchased each of its assets again at the transition time for consideration equal to the asset's adjusted market value at the transition time.

57-25(4)    

(a) sections 53I to 62AAV of this Act(relating to depreciation on trading ships); and

(b) Subdivision B of Division 3 of Part III of this Act (about development allowance); and

(c) Divisions 10 , 10AAA , 10AA and 10AB of Part III (about operations relevant to the mining and quarrying industry); and

(d) Division 10A of Part III (about timber operations and timber mill buildings); and

(g) Divisions 10C and 10D (about deductions for capital expenditure on some buildings); and

(h) the former Division 42 of the Income Tax Assessment Act 1997 (about depreciation); and

(k) the former Division 330 of the Income Tax Assessment Act 1997 (about mining and quarrying); and

(l) the former Subdivision 387-G of the Income Tax Assessment Act 1997 (about forestry roads and timber mill buildings).