Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The originating company and recipient company must be members of the same * wholly - owned group at the time of the trigger event.
Note: This requirement is taken to be satisfied in the case of the transfer of the life insurance business of a life insurance company: see section 121AS of the Income Tax Assessment Act 1936 .
(2) The * CGT asset involved (the roll - over asset ) must not be:
(a) * trading stock of the recipient company just after the time of the trigger event; or
(b) a * registered emissions unit * held by the recipient company just after the time of the trigger event.
(3) If:
(a) the roll - over asset is a right or * convertible interest referred to in Division 130, or an option referred to in Division 134, or an * exchangeable interest; and
(b) the recipient company * acquires another * CGT asset by exercising the right or option or by converting the convertible interest or in exchange for the disposal or redemption of the exchangeable interest;
the other asset cannot become * trading stock of the recipient company just after the recipient company acquired it.
(3A) If:
(a) the roll - over asset is an option referred to in Division 134; and
(b) the recipient company * acquires another * CGT asset by exercising the option;
the other asset cannot become a * registered emissions unit * held by the recipient company just after the recipient company acquired it.
(4) The * ordinary income and * statutory income of the recipient company must not be exempt from income tax because it is an * exempt entity for the income year of the trigger event.
(5) The requirements in one of the items in this table must be satisfied.
Additional requirements | |||
Item | At the time of the trigger event the originating company must be: | At the time of the trigger event the recipient company must be: | The roll - over asset must be taxable Australian property: |
1 | Either: (a) a foreign resident; or (b) an Australian resident but not a * prescribed dual resident | A foreign resident | Either: (a) just before and just after the trigger event, for a disposal case; or (b) just after that event, for a creation case |
2 | A foreign resident | An Australian resident but not a * prescribed dual resident | Either: (a) just before the trigger event, for a disposal case; or (b) just after that event, for a creation case |
(6) If the originating company or the recipient company is an Australian resident at the time of the trigger event, that company must:
(a) be a * member of a * consolidated group or * MEC group at that time; or
(b) not be a member of a * consolidatable group at that time.
(7) If the originating company is a foreign resident, it must not have * acquired the * CGT asset described in subsection (8) because of:
(a) a single * CGT event giving rise to a roll - over under a previous application of this Subdivision (as amended by the New Business Tax System (Consolidation) Act (No. 1) 2002 ) involving an Australian resident originating company other than the company that is the recipient company for the current application of this Subdivision; or
(b) a series (whether or not it is the longest possible series) of consecutive CGT events giving rise to roll - overs under previous applications of this Subdivision (as amended by the New Business Tax System (Consolidation) Act (No. 1) 2002 ), the earliest involving an Australian resident originating company other than the company that is the recipient company for the current application of this Subdivision.
(8) Subsection (7) operates in relation to the * CGT asset:
(a) that was involved in the trigger event in a disposal case; or
(b) because of which the originating company was able to create the CGT asset that was involved in the trigger event in a creation case.
(9) Subsection (7) does not apply if each of the following companies mentioned in that subsection:
(a) the recipient company for the roll - over under the current application of this Subdivision;
(b) the Australian resident originating company for the roll - over under:
(i) for paragraph (7)(a)--the previous application of this Subdivision; or
(ii) for paragraph (7)(b)--the earliest previous application of this Subdivision for that series of consecutive * CGT events;
was, at the time of its roll - over, the * head company of the same * MEC group.