Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 170.255

  (1)   This Subdivision applies if:

  (a)   an event (the deferral event ) happens involving a company (the originating company ) and another entity; and

  (b)   one or more of the following apply:

  (i)   the deferral event is a * CGT event that would have resulted in the originating company making a * capital loss (except a capital loss that would be disregarded under a provision of this Act other than this Subdivision);

  (ii)   the deferral event would have resulted in the originating company becoming entitled to a deduction in respect of the disposal of a CGT asset or of an interest in a CGT asset;

  (iii)   if the originating company is a partner in a partnership--the deferral event would have resulted in the partnership becoming entitled to a deduction in respect of the disposal of a CGT asset or of an interest in a CGT asset; and

  (c)   if subparagraph   (b)(i) applies--the CGT event is one of the following:

  (i)   CGT events A1 and B1 (a disposal case );

  (ii)   CGT events D1, D2, D3 and F1 (a creation case ); and

Note:   The full list of CGT events is in section   104 - 5.

  (d)   one of the following applies:

  (i)   the originating company is an Australian resident at the time of the deferral event;

  (ii)   if the deferral event is a CGT event D1--the * CGT asset that is the subject of the creation of the contractual or other rights is * taxable Australian property;

  (iii)   if the deferral event is a CGT event A1, B1 or F1--the asset or the subject of the lease, as the case may be, was * taxable Australian property immediately before the deferral event;

  (iv)   if the deferral event is a CGT event D2--the option was taxable Australian property immediately after the deferral event;

  (v)   if subparagraph   (b)(ii) or (iii) applies--the originating company is a foreign resident at the time of the deferral event; and

  (e)   at the time of the deferral event, the originating company is a member of a * linked group and one of the following applies:

  (i)   the other entity is a company that is not a connected entity of the originating company and is a member of that linked group;

  (ii)   the other entity is a connected entity of the originating company;

  (iii)   the other entity is an * associate of such a connected entity.

  (2)   Despite subsection   (1):

  (a)   this Subdivision does not apply because of * CGT event B1 if title in the * CGT asset does not pass to the other entity when the agreement ends; and

  (b)   this Subdivision does not apply if the deferral event involves the * acquisition of a greater than 50% interest in a CGT asset by an entity other than an entity referred to in subparagraph   (1)(e)(i), (ii) or (iii).