Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 820.423AA

Acquisition of new membership interests in entities

  (1)   For the purposes of paragraph   820 - 423A(2)(f), the acquisition of a * CGT asset is covered by this section if:

  (a)   the CGT asset is a * membership interest in:

  (i)   an * Australian entity; or

  (ii)   a * foreign entity that is a company; and

  (b)   the membership interest has not previously been held by any entity.

Acquisition of certain new depreciating assets

  (2)   For the purposes of paragraph   820 - 423A(2)(f), the acquisition of a * CGT asset is covered by this section if all of the following conditions are satisfied:

  (a)   the CGT asset is a * depreciating asset other than an intangible asset;

  (b)   an entity (the acquirer ) holds the CGT asset immediately after its acquisition;

  (c)   at the time of the acquisition, it is reasonable to conclude that the acquirer expects to use the CGT asset:

  (i)   for a * taxable purpose; and

  (ii)   within Australia; and

  (iii)   within 12 months;

  (d)   at the time of the acquisition, the CGT asset has not been * installed ready for use, or previously used for a taxable purpose, by any of the following:

  (i)   the acquirer;

  (ii)   an associate disposer of the acquirer;

  (iii)   an * associate pair of the acquirer.

Acquisition of certain debt interests

  (3)   For the purposes of paragraph   820 - 423A(2)(f), the acquisition of a * CGT asset is covered by this section if all of the following conditions are satisfied:

  (a)   the CGT asset is a * debt interest;

  (b)   an entity (the acquirer ) holds the debt interest immediately after its acquisition;

  (c)   the debt interest is issued by an * associate pair of the acquirer;

  (d)   the debt interest has not previously been held by any entity.