Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 58.5

  (1)   This Division applies in 2 situations.

Entity sale

  (2)   The first (an entity sale situation ) is where:

  (a)   at a particular time on or after 1   July 2001, an entity is an * exempt entity; and

  (b)   just after that time, the entity's * ordinary income or * statutory income becomes to any extent assessable income.

  (3)   In an entity sale situation:

  (a)   the entity is a transition entity ; and

  (b)   the time when the entity's * ordinary income or * statutory income becomes to that extent assessable is the transition time ; and

  (c)   the income year in which the * transition time occurs is the transition year for the entity; and

  (d)   the * depreciating assets the * transition entity * held just before the transition time are privatised assets .

Asset sale

  (4)   The second (an asset sale situation ) is where:

  (a)   at a particular time on or after 1   July 2001, an entity (the purchaser ) whose * ordinary income or statutory income is to any extent assessable acquires a * depreciating asset from the Commonwealth, a State, a Territory or an * exempt entity; and

  (b)   the asset is acquired in connection with the acquisition of a * business from the Commonwealth, the State, the Territory or the exempt entity.

  (5)   In an asset sale situation:

  (a)   the Commonwealth, the State, the Territory or the * exempt entity is the tax exempt vendor ; and

  (b)   the time when the * depreciating asset is acquired is the acquisition time ; and

  (c)   the income year in which the * acquisition time occurs is the acquisition year ; and

  (d)   each * depreciating asset the purchaser acquires from the * tax exempt vendor at the acquisition time is a privatised asset .